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This document presents the fields to be defined in the REVALUATION.PARAMETER table as well as others related to the concept of revaluation.
It includes the following elements:
Preamble
1. Description of the REVALUATION.PARAMETER fields
A. Specific Part
B. Common Part
2. Other tables concerned
Preamble
The document “FX Revaluation” presents the general principles of the revaluation of foreign exchange contracts under Globus. The REVALUATION.PARAMETER table described below allows you to apply these accounting principles.
1. Description of REVALUATION.PARAMETER fields
- Specific Part
Fields 1 to 19 are used to define accounting rules that apply specifically to a scope declared in # 1.xx APPLIC.ID i.e.:
a) a module (FX, SC, FT, SWAP,…)
and/or b) a contract type for the FOREX module (FX.RB, FX.SP)
and/or c) foreign exchange transactions entered in the balance sheet (AL)
and/or d) anything that is not already declared, and therefore included in “catch all”: ALL or REST
Notes:
b) For the Forex module, it is possible to apply specific rules for all transactions subject to revaluation using a spot rate (FX.SP) or a forward rate (FX.RB)
d) The keywords ALL or REST imply:
ALL: anything that is not taken into account in particular modules or contract types (see other # 1.xx) will be revalued individually.
REST: anything that is not taken into account in particular modules or contract types (see other # 1.xx) will feed consolidation keys which will be subject to re-evaluation.
# 2.xx REVAL.TYPE :
Type de cours utilisé pour la réévaluation : SP ou RB (spot ou recalcul d’un cours terme)
# 3.xx REVAL.SYS.ID :
Permet de choisir le “module” sous lequel les écritures seront générées. Voir le rapport issu du batch : TRANSACTION JOURNAL, qui ventile toutes les écritures par “modules”.
– Optionnel
# 4.xx BOOK.PROFITS :
Accounting for exchange gains Y/N
# 5.xx POSTING.STYLE :
Accounting for revaluations in :
• translation differences
cancels and replaces the results of the previous revaluation or in
• exchange difference
only the difference noted compared to the previous revaluation is recorded
# 6.xx LOSS.CATEG :
Category used for exchange losses
# 7.xx PRFT.CATEG :
Category used for exchange gains
# 8.xx LOSS.INT.CATEG :
Internal account category to balance exchange loss entries.
# 9.xx PRFT.INT.CATEG :
Internal account category to balance exchange gain entries.
# 10.xx LOSS.PROD.CATEG :
Product.Category to be attached to the entry on the internal exchange loss account.
# 11.xx PRFT.PROD.CATEG :
Product.Category to be attached to the entry on the internal accounts of foreign exchange gains.
# 12.xx LOSS.CR.TXN.CD :
Transaction code used for credit entries for foreign exchange losses
# 13.xx LOSS.DB.TXN.CD :
Transaction code used for debit entries for foreign exchange losses
# 14.xx PRFT.CR.TXN.CD :
Transaction code used for credit entries for foreign exchange profits
# 15.xx PRFT.DB.TXN.CD :
Transaction code used for credit entries for foreign exchange profits
# 16.xx LOSS.FIX.CAT; # 17.xx PRFT.FIX.CAT ; # 18.xx LOSS.FIX.INT.CT ; # 19.xx PRFT.FIX.INT.CT:
When foreign exchange contracts in position involve two currencies that become linked from a certain date (e.g.: EURO), they are no longer subject to price variations and are therefore excluded from revaluations. On the date of fixing of fixed parities, the batch processing transfers latent capital gains or losses to these categories of PL declared in # 16 and # 17, via internal transit accounts declared in # 18 and # 19. See # 141 of FOREX.
- B. Common Area
# 22 FASB.REVALUATION
Specifies whether the revaluation uses bid/ask rates (Yes) or average rates (No)
# 23 REVAL.CCY
Allows to substitute a particular currency for the local currency for revaluation entries.
# 24 REVAL.DEAL.POST
Specifies whether revaluation entries should be maintained by contract/transaction.
# 25 INTERPOLATION.MKR
Specifies the method for searching for forward rates (on FORWARD.RATES):
“empty”: linear interpolation
1: takes the next available rate
2: takes the closest rate
# 26 DETAIL.REVAL.REP
Frequency at which the batch produces the “DETAILED REVALUATION REPORT” report. Ex.: B every business day, etc…
# 27 SPOT. REVAL.BOOKING
Specifies whether to account for the revaluation of contracts using spot rates. Not modifiable.
# 28 FWD. REVAL.BOOKING
Specifies whether to account for the revaluation of contracts using forward rates (RB). Not modifiable.
# 29 POS.DATE.SAME.CCY
# 30 POS.DATE.DIFF.CCY
2. Other Tables Concerned
CURRENCY
# 14 MID.REVAL.RATE or # 16 BUY.RATE & 17 SELL.RATE :
Rates used by balance sheet revaluation and spot rate transactions. See #22 of REVALUATION.PARAMETER.
# 24 REVAL.RATE :
Allows a revaluation rate to be substituted for the rates normally used for the balance sheet and transactions revalued at spot rates (#14)
FORWARD.RATES
# 6.x FORWARD.PREMIUM
Allows to reconstruct the forward rates used by the revaluation of forward transactions in the Rebate method.
FX.PARAMETERS
# 31 CAT.CODE.FWD.INT
Product Category used by position amortizing entries. Used with FXCCYPOS ACCOUNT.CLASS. See also FOREX #130, 131 and 132
# 32 FWD.INT.PROFIT.CAT
Category Code to be used for deferred interest amortizations (interest receivable)
#33 FWD.INT.LOSS.CAT
Category Code to be used for deferral amortization (interest payable)
FOREX
# 4 DEALER.DESK
The DEPARTMENT attached to the DEALER.DESK will receive all foreign exchange positions as well as the result of their revaluations.
# 25 REVALUATION.TYPE
Specifies the revaluation method for each contract entered (RB, IN, etc.)
# 30 INT.RATE.BUY
#31 INT.RATE.SELL
For contracts revalued using the IN method, the system will use these rates to calculate depreciation.
#110 NOTIONAL.BUY.AMT
# 111 NOTIONAL.SELL.AMT
For the IH method, the system calculates these notional amounts (representing the present values of the amounts purchased and sold) which will serve as the basis for the amortization of the related interest.
# 141 REALISE.FIX.PL
Allows to freeze the latent gains or losses of futures contracts when the currencies involved become correlated by a fixed parity. (cf EURO), # 16 to 19 of REVALUATION.PARAMETER.