Money Market – Loan Full Rollover – Payment of Interest – DST at VDate
PURPOSE
To show illustration of money market loan rollover – partial.
OVERVIEW
i. In a rollover, CS Lucas system automatically create a new Money Market Transaction for the rollover trade.
ii. The settlement is cleared through a “system clearing account”.
iii. The accounting is deal with as illustrated below. The same treatment is used for loan and deposit (placements).
iv. Documentary 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 |
Original Trade
| USD |
| MMK1001 |
| 11-Mar-19 |
11-Mar-19 |
10-Apr-19 |
PHP |
| 100,000,000.00 |
5.50000% |
| Act/360 |
458,333.33 |
9,166.67 |
61,643.84 |
100,449,166.66 |
New Rollover Trade
| USD |
| MMK1002 |
| 10-Apr-19 |
10-Apr-19 |
15-May-19 |
PHP |
| 100,000,000.00 |
5.50000% |
| Act/360 |
534,722.22 |
10,694.44 |
71,917.81 |
100,524,027.78 |
SUMMARY OF JOURNALS
| ID | Date | Description |
|---|---|---|
| J6 | 10-Apr-19 | Money Market Loan Maturity (Original Trade) |
| J1 | 10-Apr-19 | Payment of Interest (Net of WHT) & DST (Cash Deal) |
| J2 | 10-Apr-19 | Money Market Loan Start |
| J3 | 15-May-19 | Money Market Loan Maturity |
J6 Money Market Loan Maturity (Original Trade)
| 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 | -9166.67 | 0.019223 | USD | -176.21 | J6c |
| MMK1001 | 10-Apr-19 | BS | Cash at Bank (Clearing A/C) | 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 |
J1 Payment of Interest (Net of WHT) & DST (Cash Deal)
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| CDL1001 | 10-Apr-19 | BS | Cash at Bank (Clearing A/C) | PHP | 521,084.47 | 0.019223 | USD | 10,017.00 | J1a |
| CDL1001 | 10-Apr-19 | BS | Cash at Bank | PHP | -521,084.47 | 0.019223 | USD | -10,017.00 | J1b |
J2 Money Market Loan Start
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1002 | 10-Apr-19 | BS | Cash at Bank (Clearing A/C) | PHP | 99,928,082.19 | 0.019223 | USD | 1,920,955.06 | J2a |
| MMK1002 | 10-Apr-19 | PL | MMK - WHTB Dr | PHP | 71,917.81 | 0.019223 | USD | 1,382.50 | J2b |
| MMK1002 | 10-Apr-19 | BS | MMK-Loan | PHP | -100,000,000.00 | 0.019223 | USD | -1,922,337.56 | J2c |
Note J2a: The booking rate on 10-Apr-2019 is 52.020000 (multiplier 0.019223). The rate is rounded to 6dp for display. Full precision is used in calculation.
J3 Money Market Loan Maturity
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MMK1002 | 15-May-19 | PL | MMK - Loan Interest Expense | PHP | 534,722.22 | 0.019223 | USD | 10,279.17 | J3a |
| MMK1002 | 15-May-19 | BS | MMK - Loan | PHP | 100,000,000.00 | 0.019223 | USD | 1,922,337.56 | J3b |
| MMK1002 | 15-May-19 | PL | MMK - WHTA Cr | PHP | -10,694.44 | 0.019117 | USD | -204.44 | J3c |
| MMK1002 | 15-May-19 | BS | Cash at Bank | PHP | -100,524,027.78 | 0.019117 | USD | -1,921,698.10 | J3d |
| MMK1002 | 15-May-19 | PL | FX - Realised Gains - Revenue | PHP | 0.00 | USD | -56.99 | J3e | |
| MMK1002 | 15-May-19 | PL | FX - Realised Gains - Capital | PHP | 0.00 | USD | -10,657.20 | J3f |
Note J3a: The average multiplier rate between 10-Apr and 15-May is 0.019223. See Exchange Rates below. Note that the last day of the loan is not included.
Note J3e: The realised foreign exchange gain on interest expense is analyzed as follows:
| PHP | Rate+ | USD |
|
| At Closing Rate | 534,722.22 | 0.019117 | 10,222.18 |
| At Average Rate | 534,722.22 | 0.019223 | 10,279.17 |
| Gain in exchange | 56.99 |
+ Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.
Note J3f: The realised gain on the loan is analyzed as follows:
| PHP | Rate+ | USD |
|
| At Closing Rate | 100,000,000.00 | 0.019117 | 1,911,680.37 |
| At Start Date | 100,000,000.00 | 0.019223 | 1,922,337.56 |
| Gain in exchange | 10,657.20 |
+ 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* |
|---|---|---|
| 10-Apr-19 | 52.020000 | 0.019223 |
| 15-May-19 | 52.310000 | 0.019117 |
Average
| From Date | To Date | PHP/USD* |
|---|---|---|
| 10-Apr-19 | 15-May-19 | 0.019223 |
*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 |
|---|---|---|
| 5-Feb-2026 | TS | Creation. |
