Money Market – Loan – At Average Rate – DST at Vdate
PURPOSE
To show illustration of money market loan with Documentary Stamp Tax (DST) at average rates.
OVERVIEW
i. Loan revalued to period end closing rate.
ii. Expense are reported at average booking rate over the life of the loan.
iii. Gain and loss arising from foreign exchange movement are analyzed into revenue and capital component.
iv. Documentaty Stamp Tax (DST) is recorded at VDate (loan inception date).
TRANSACTION DETAILS
| Accounting Base Ccy |
| Trade ID |
| Trade Date |
| Value Date |
| Maturity Date |
| Currency |
| Amount |
| Rate |
| Accrual Method |
| Total Interest |
| Withholding Tax 2% |
| Documentary Stamp Tax |
| Maturity Amount |
| USD |
| MMK1001 |
| 11-Mar-19 |
11-Mar-19 |
10-Apr-19 |
PHP |
| 100,000,000.00 |
5.5% |
| Act/360 |
458,333.33 |
9,166.67 |
61,643.84 |
100,449,166.66 |
SUMMARY OF JOURNALS
| ID | Date | Description |
|---|---|---|
| J1 | 11-Mar-19 | Money Market Loan Start (DST at VDate). |
| J2 | 31-Mar-19 | Money Market Month End Accruals. |
| J3 | 01-Apr-19 | Reversal Money Market Month End Accruals. |
| J4 | 10-Apr-19 | Money Market Loan Maturity. |
J1 Money Market Loan Start (DST at VDate).
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1001 | 11-Mar-19 | BS | Cash at Bank | PHP | 99,938,356.16 | 0.019128 | USD | 1,911,598.24 | J1a |
| MMK1001 | 11-Mar-19 | PL | MMK - WHTB Dr | PHP | 61,643.84 | 0.019128 | USD | 1,179.11 | J1b |
| MMK1001 | 11-Mar-19 | BS | MMK-Loan | PHP | -100,000,000.00 | 0.019128 | USD | -1,912,777.35 | J1c |
Note J1a : The booking rate on 11-Mar-2019 is 52.280000 (multiplier 0.019128).The rate is rounded to 6dp for display. Full precision is used in calculation.
J2 Money Market Month End Accruals.
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1001 | 31-Mar-19 | PL | MMK- Loan Interest Expense | PHP | 320,833.33 | 0.019121 | USD | 6,134.61 | J2a |
| MMK1001 | 31-Mar-19 | BS | MMK- Loan Interest Payables | PHP | -320,833.33 | 0.018983 | USD | -6,090.23 | J2b |
| MMK1001 | 31-Mar-19 | PL | FX - Unrealised Gains - Revenue | PHP | 0.00 | USD | -44.38 | J2c | |
| MMK1001 | 31-Mar-19 | BS | MMK - Loan | PHP | 0.00 | USD | 14,523.74 | J2d | |
| MMK1001 | 31-Mar-19 | PL | FX - Unrealised Gains - Capital | PHP | 0.00 | USD | -14,523.74 | J2e |
Note J2a : The average multiplier rate between 11-Mar and 31-Mar is 0.019121. See Exchange Rates below. The rate is rounded to 6dp for display. Full precision is used in calculation.
Note J2b : Calculation of Accrual in PHP
| Start date | 11-Mar-19 | |
| Month End Date | 31-Mar-19 | |
| Days (include 31-Mar) | 21 | =A |
| Start date | 11-Mar-19 | |
| Maturity Date | 10-Apr-19 | |
| Days (exclude 10-Apr) | 30 | =B |
| Total Interest | 458,333.33 | =C |
| Period Interest | 320,833.33 | =C*A/B |
Note J2c : The unrealised foreign exchange gain on interest expense is analyzed as follows:
| PHP | Rate+ | USD |
|
| At Closing Rate | 320,833.33 | 0.018983 | 6,090.23 |
| At Average Rate | 320,833.33 | 0.019121 | 6,134.61 |
| Gain in exchange | 44.38 |
+ Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
Note J2e : The unrealised loss on the revaluation of the loan is analyzed as follows:
| SGD | Rate+ | USD |
|
| At Closing Rate | 100,000,000.00 | 0.018983 | 1,898,253.61 |
| At Start Date | 100,000,000.00 | 0.019128 | 1,912,777.35 |
| Gain in exchange | 14,523.74 |
+ Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
J3 Reversal Money Market Month End Accruals.
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1001 | 01-Apr-19 | PL | MMK - Loan Interest Expense | PHP | -320,833.33 | 0.019121 | USD | -6,134.61 | J3a |
| MMK1001 | 01-Apr-19 | BS | MMK - Loan Interest Payables | PHP | 320,833.33 | 0.018983 | USD | 6,090.23 | J3b |
| MMK1001 | 01-Apr-19 | PL | FX - Unrealised Gain-Revenue | PHP | 0.00 | USD | 44.38 | J3c | |
| MMK1001 | 01-Apr-19 | BS | MMK - Loan | PHP | 0.00 | USD | -14,523.74 | J3d | |
| MMK1001 | 01-Apr-19 | PL | FX - Unrealised Gains - Capital | PHP | 0.00 | USD | 14,523.74 | J3e |
J4 Money Market Loan Maturity.
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1001 | 10-Apr-19 | PL | MMK - Loan Interest Expense | PHP | 458,333.33 | 0.019079 | USD | 8,744.71 | J6a |
| MMK1001 | 10-Apr-19 | BS | MMK - Loan | PHP | 100,000,000.00 | 0.019128 | USD | 1,912,777.35 | J6b |
| MMK1001 | 10-Apr-19 | PL | MMK - WHTA Cr | PHP | -9,166.67 | 0.019223 | USD | -176.21 | J6c |
| MMK1001 | 10-Apr-19 | BS | Cash at Bank | PHP | -100,449,166.66 | 0.019223 | USD | -1,930,972.06 | J6d |
| MMK1001 | 10-Apr-19 | PL | FX - Realised Losses - Revenue | PHP | 0.00 | USD | 66.00 | J6e | |
| MMK1001 | 10-Apr-19 | PL | FX - Realised Losses - Capital | PHP | 0.00 | USD | 9,560.21 | J6f |
Note J6a : The average multiplier rate between 11-Mar to 10-Apr is 0.019084. See Exchange Rates below. Note that the last day of the loan is not included. The rate is rounded to 6dp for display. Full precision is used in calculation.
Note J6e : The realised foreign exchange loss on interest expense is analyzed as follows:
| PHP | Rate+ | USD |
|
| At Closing Rate | 458,333.33 | 0.019223 | 8,810.71 |
| At Average Rate | 458,333.33 | 0.019079 | 8,744.71 |
| Loss in exchange | -66.00 |
+ Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
Note J6f : The realised loss on the loan is analyzed as follows:
| PHP | Rate+ | USD |
|
| At Closing Rate | 100,000,000.00 | 0.019223 | 1,922,337.56 |
| At Start Date | 100,000,000.00 | 0.019128 | 1,912,777.35 |
| Loss in exchange | -9,560.21 |
+ Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
EXCHANGE RATES
Our illustration assumes the company uses different daily exchange rates for accounting.
Average rates are computed by using the multiplier rate from trade/transaction currency to the base currency each day and averaging this over the relevant period.
The following rates were used for this illustration.
Spot Rate
| Date | USD/PHP | PHP/USD* |
|---|---|---|
| 11-Mar-19 | 52.280000 | 0.019128 |
| 31-Mar-19 | 52.680000 | 0.018983 |
| 10-Apr-19 | 52.020000 | 0.019223 |
Average
| From Date | To Date | PHP/USD* |
|---|---|---|
| 11-Mar-19 | 31-Mar-19 | 0.019121 |
| 11-Mar-19 | 10-Apr-19 | 0.019084 |
*Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
FREQUENTLY ASKED QUESTIONS
RELATED INFORMATION
CS LUCAS CONFIGURATION
11000101_7 MM Start – DST (Philippine Documentary Stamp Tax)
11000102_7 Maturity Journal – DST (Philippine Documentary Stamp Tax). Interest at average rate. Revalue Principal at TDate Exc Rate
11000103_1 To record the accrual of Interest in MM Deposits and Loans. P & L booked at AVERAGE rate. Difference taken to FX Realised – Revenue.
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 4-Feb-2026 | TS | Creation. |
