10. Annexure A – Event-wise Accounting Entries for your Own Portfolio

This section contains details of the suggested accounting entries that can be maintained, while setting up a portfolio product (for your bank and for your customer’s as well) for the ETD module of Oracle FLEXCUBE. The details of the suggested accounting entries are listed event-wise.

10.1 ETD Events

The following is an exhaustive list of events that can take place during the lifecycle of an ET deals. In the subsequent paragraphs we shall examine the accounting entries for each of the events listed below.

Event Code Event Description
EOLG Opening of Long Position
ERVL Revaluation of long Position
ECLG Closure of Long Position
EOSH Opening of Short Position
ERVS Revaluation of Short Position
ECSH Closure of Short Position
EXPL Expiry of Long Position
EXPS Expiry of Short Position
EXRL Exercise in Long Position
EAXS Assignment in Short Position
EEPL Exchange for Physicals in Long
EEPS Exchange for Physicals in Short
ROLG Reversal – Opening of Long Position
RRVL Reversal – Revaluation of Long Position
RCLG Reversal – Closure of Long Position
ROSH Reversal – Opening of Short Position
RRVS Reversal – Revaluation of Short Position
RCSH Reversal – Closure of Short Position
RXPL Reversal – Expiry of Long Position
RXPS Reversal – Expiry of Short Position
RXRL Reversal – Exercise in Long Position
RAXS Reversal – Assignment in Short Position
REPL Reversal – Exchange for Physicals in Long
REPS Reversal – Exchange for Physicals in Short
EMAT Event Matching of Deal
EUMT Event for Un-matching
EBOK Booking of Contract
EREV Reversal of Booking
EAMD Amendment of Contract

10.2 Amount Tags

The Amount Tags listed below are provided in Oracle FLEXCUBE.

Amount Tag Description
AVG_PREMIUM_PAID Average Premium Paid to acquire the Existing Holding
AVG_PREMIUM_RE­CEIVED Average Premium Received to acquire the Short Hold­ing
BOOK_VALUE Holding Cost of the Instrument
BOT_ASSET Bought Asset in Asset Currency
BOT_ASSET_DECR Decrease in contract Positions in Asset Currency
BOT_ASSET_INCR Increase in contract Positions in Asset Currency
BOT_CCY_EQ Equivalent Amount in Pricing Currency
BOT_CCY_EQ_DECR Equivalent decrease in contract Positions in Pricing Cur­rency
BOT_CCY_EQ_INCR Equivalent increase in contract Positions in Pricing Cur­rency
CLOSE_PRICE_PRE­MIUM Closing Price / Premium in Pricing Currency
CLOSURE_GAIN Gain on Closure of Position
CLOSURE_LOSS Loss on Closure of Position
DEAL_PREMIUM_AMT Deal Premium Amount in Pricing Currency
EFP_GAIN Gain due to Exchange of Futures for Physicals
EFP_LOSS Loss due to Exchange of Futures for Physicals
EXERCISE_AS­SIGN_GAIN Gain due to Assignment of the option
EXERCISE_AS­SIGN_LOSS Loss due to Assignment of the option
EXERCISE_GAIN Gain due to Exercise of the option
EXERCISE_LOSS Loss due to Exercise of the option
EXPIRY_GAIN Gain due to Expiry of the Instrument
EXPIRY_LOSS Loss due to Expiry of the Instrument
NOTIONAL_GAIN Notional Gain in Pricing Currency
NOTIONAL_LOSS Notional Loss in Pricing Currency
REALIZED_GAIN Realized Gain in Pricing Currency
REALIZED_LOSS Realized Loss in Pricing Currency
SOLD_ASSET Sold Asset in Asset Currency
SOLD_ASSET_DECR Decrease in contract Positions in Asset Currency
SOLD_ASSET_INCR Incr. in Cont. Positions in Asset Currency
SOLD_CCY_EQ Equivalent Amount in Pricing Currency
SOLD_CCY_EQ_DECR Equivalent decrease in contract Positions in Pricing Cur­rency
SOLD_CCY_EQ_INCR Equivalent increase in contract Positions in Pricing Cur­rency
SPOT_STRIKE_DIFF Commodity spot minus Strike price of the option
MG_SETLM_AMT_MREF Margin Refund Amount
MG_SETLM_AMT_MTOP Margin Top Up Amount

In addition to these, you can define any number of amount tags as per your requirement.

10.3 Accounting Roles

The following list contains details of the accounting Roles that are applicable to deals involving portfolio products.

Accounting Role Description Role Type
BR_­SETLM_BRIDGE Broker Settlement Bridge Asset
PF_­SETLM_BRIDGE Customer Settlement Bridge Asset
CONT_ASSET Contingent Asset Contingent Asset
CONT_ASSET_OFF Contingent Asset Offset Contingent Asset
CONT_LIAB Contingent Liability Contingent Liabil­ity
CONT_LIAB_OFF Contingent Liability Offset Contingent Liabil­ity
CONTROL Control Asset Asset
EFP_GAIN Gain due to Exchange of Futures Income
EXERCISE_GAIN Gain due to Exercise of option Income
ASSIGN_GAIN Gain due to Assignment of option Income
EXPIRY_GAIN Gain due to Expiry of option Income
EFP_LOSS Loss due to Exchange of Futures Expense
EXERCISE_LOSS Loss due to Exercise of option Expense
ASSIGN_LOSS Loss due to Assignment of option Expense
EXPIRY_LOSS Loss due to Expiry of option Expense
TRADING_GAIN Closure gain Income
TRADING_LOSS Closure loss Expense
PREMIUM_PAID Premium paid Asset
PREMIUM_RECVD Premium received Liability
REALIZED_GAINS Realized gains Income
REALIZED_LOSS Realized loss Expense
REVAL_ASSET Revaluation asset Asset
REVAL_LIAB Revaluation liability Liability
UNREAL_EXPENSE Unrealized expense Expense
UNREAL_INCOME Unrealized income Income
BR_SETTLEMENT Broker Settlement  
BR_RECEIVABLE Broker Receivable  
BR_PAYABLE Broker Payable  
PF_SETTLEMENT Portfolio Settlement  
PF_PAYABLE Portfolio Payable  
PF_RECEIVABLE Portfolio Receivable  

10.4 Event-wise Accounting Entries for your Own portfolio

In the subsequent sections we have defined suggested accounting entries for each of the events in the life-cycle of deals involving your banks portfolio product.

Note

Some of the Amount Tag’s linked to the Accounting Roles are user defined.

EOLG - Opening of Long Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options – O
Credit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET BOT_ASSET Futures , Call Options – O,F
Credit CONT_AS­SET_OFF SOLD_CCY_EQ  
Debit CONT_LIAB_OFF BOT_CCY_EQ Put options – O,F
Credit CONT_LIAB SOLD_ASSET  
Debit PREMIUM_PAID DEAL_PREMI­UM_AMT Call & Put Options – O

 

EVRL – Revaluation of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REALIZED_GAIN Debit Future, Call and Put Options - F
REALIZED_GAINS REALIZED_GAIN Credit Future, Call and Put Options - F
REALIZED_LOSS REALIZED_LOSS Debit Future, Call and Put Options - F
BR_­SETLM_BRIDGE REALIZED_LOSS Credit Future, Call and Put Options - F
CONT_ASSET BOT_ASSET_INCR Debit Future, Call Option-F
CONT_AS­SET_OFF SOLD_C­CY_EQ_INCR Credit Future, Call Option-F
CONT_AS­SET_OFF SOLD_CCY_EQ_­DECR Debit Future, Call Option-F
CONT_ASSET BOT_ASSET_DECR Credit Future, Call Option-F
CONT_LIAB_OFF BOT_C­CY_EQ_INCR Debit Future, Put Option -F
CONT_LIAB SOLD_ASSET_INCR Credit Future, Put Option -F
CONT_LIAB BOT_CCY_EQ_­DECR Debit Future, Put Option -F
CONT_LIAB_OFF SOLD_ASSET_­DECR Credit Future, Put Option -F
REVAL_ASSET NOTIONAL_GAIN Debit Call & Put Option - C
UNREAL_INCOME NOTIONAL_GAIN Credit Call & Put Option - C
UNREAL_EX­PENSE NOTIONAL_LOSS Debit Call & Put Option - C
REVAL_LIAB NOTIONAL_LOSS Credit Call & Put Option - C

ECLG – Closure of Long Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Futures, Call & Put Options – O,F
Credit PF_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM  
Debit PF_­SETLM_BRIDGE BOOK_VALUE Futures, Call & Put Options – O,F
Credit BR_­SETLM_BRIDGE BOOK_VALUE  

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET BOT_ASSET_INCR Futures , Call Option - F
Credit CONT_AS­SET_OFF SOLD_CCY_EQ_INCR  
Debit CONT_AS­SET_OFF SOLD_CCY_EQ_DECR Futures , Call Option – F
Credit CONT_ASSET BOT_ASSET_DECR  
Debit CONT_LIAB_OFF BOT_CCY_EQ_INCR Futures , Put Option - F
Credit CONT_LIAB SOLD_ASSET_INCR  
Debit CONT_LIAB SOLD_ASSET_DECR Futures , Put Option – F
Credit CONT_LIAB_OFF BOT_CCY_EQ_DECR  
Debit CONT_AS­SET_OFF BOT_CCY_EQ Future, Call Options – F & O
Credit CONT_ASSET SOLD_ASSET  
Debit CONT_LIAB BOT_ ASSET Future, Put Options – F & O
Credit CONT_LIAB_OFF SOLD_ CCY_EQ  
Debit BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Futures, Call & Put Options – F, O
Credit CONTROL CLOSE_PRICE_PRE­MIUM  
Debit CONTROL BOOK_VALUE Futures, Call & Put Options – F
Credit BR_­SETLM_BRIDGE BOOK_VALUE  
Debit CONTROL AVG_PREMIUM_PAID Call & Put Options – O
Credit PREMIUM_PAID AVG_PREMIUM_PAID  
Debit CONTROL CLOSURE_GAIN Futures, Call & Put Options – F, O
Credit TRADING_GAIN CLOSURE_GAIN  
Debit TRADING_LOSS CLOSURE_LOSS Futures, Call & Put Options – F, O
Credit CONTROL CLOSURE_LOSS  
Debit CONT_ASSET BOT_ASSET_INCR Futures , Call Option - F
Credit CONT_AS­SET_OFF SOLD_CCY_EQ_INCR  
Debit CONT_AS­SET_OFF SOLD_CCY_EQ_DECR Futures , Call Option – F
Credit CONT_ASSET BOT_ASSET_DECR  
Debit CONT_LIAB_OFF BOT_CCY_EQ_INCR Futures , Put Option - F
Credit CONT_LIAB SOLD_ASSET_INCR  
Debit CONT_LIAB SOLD_ASSET_DECR Futures , Put Option – F
Credit CONT_LIAB_OFF BOT_CCY_EQ_DECR  
Debit CONT_AS­SET_OFF BOT_CCY_EQ Future, Call Options – F & O
Credit CONT_ASSET SOLD_ASSET  
Debit CONT_LIAB BOT_ ASSET Future, Put Options – F & O
Credit CONT_LIAB_OFF SOLD_ CCY_EQ  

 

EOSH – Opening of Short Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options – O
Credit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET BOT_ASSET Put Option – O,F
Credit CONT_ASSET_OFF SOLD_CCY_EQ  
Debit CONT_LIAB_OFF BOT_CCY_EQ Futures, Call Option – O,F
Credit CONT_LIAB SOLD_ASSET  
Debit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options - O

 

ERVS – Revaluation of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REALIZED_GAIN Debit Future, Call and Put Options -F
REALIZED_GAINS REALIZED_GAIN Credit Future, Call and Put Options -F
REALIZED_LOSS REALIZED_LOSS Debit Future, Call and Put Options -F
BR_­SETLM_BRIDGE REALIZED_LOSS Credit Future, Call and Put Options -F
CONT_ASSET BOT_ASSET_INCR Debit Put Option – F
CONT_AS­SET_OFF SOLD_C­CY_EQ_INCR Credit Put Option –F
CONT_AS­SET_OFF SOLD_CCY_EQ_­DECR Debit Put Option –F
CONT_ASSET BOT_ASSET_DECR Credit Put Option –F
CONT_LIAB_OFF BOT_C­CY_EQ_INCR Debit Call Option –F , Futures
CONT_LIAB SOLD_ASSET_INCR Credit Call Option –F , Futures
CONT_LIAB SOLD_CCY_EQ-DECR Debit Call Option –F , Futures
CONT_LIAB_OFF BOT_ASSET_DECR Credit Call Option –F , Futures
REVAL_ASSET NOTIONAL_GAIN Debit Call & Put Options -O
UNREAL_INCOME NOTIONAL_GAIN Credit Call & Put Options -O
UNREAL_EX­PENSE NOTIONAL_LOSS Debit Call & Put Options -O
REVAL_LIAB NOTIONAL_LOSS Credit Call & Put Options -O

ECSH – Closure of Short Positions

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit PF_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Futures,Call & Put Options – O,F
Credit BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM  
Debit BR_­SETLM_BRIDGE BOOK_VALUE Futures, Call & Put Options – O,F
Credit PF_­SETLM_BRIDGE BOOK_VALUE  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET BOT_ASSET_INCR Put Options – O, F
Credit CONT_AS­SET_OFF SOLD_CCY_EQ_INCR  
Debit CONT_AS­SET_OFF SOLD_CCY_EQ_DECR Put Options – O, F
Credit CONT_ASSET BOT_ASSET_DECR  
Debit CONT_LIAB_OFF BOT_CCY_EQ_INCR Future, Call Option – F
Credit CONT_LIAB SOLD_ASSET_INCR  
Debit CONT_LIAB SOLD_ASSET_DECR Future, Call Option – F
Credit CONT_LIAB_OFF BOT_CCY_EQ_DECR  
Debit CONT_AS­SET_OFF BOT_CCY_EQ Put Options – O, F
Credit CONT_ASSET SOLD_ASSET  
Debit CONT_LIAB BOT_ASSET Futures, Call Options – O, F
Credit CONT_LIAB_OFF SOLD_CCY_EQ  
Debit CONTROL CLOSE_PRICE_PRE­MIUM Futures, Call & Put Options – F
Credit BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM  
Debit BR_­SETLM_BRIDGE BOOK_VALUE Futures, Call & Put Options – F
Credit CONTROL BOOK_VALUE  
Debit PREMI­UM_RECVD AVG_PREMIUM_RE­CEIVED Call & Put Options – O
Credit CONTROL AVG_PREMIUM_RE­CEIVED  
Debit CONTROL CLOSURE_GAIN Call & Put Options – O
Credit TRADING_GAIN CLOSURE_GAIN  
Debit TRADING_LOSS CLOSURE_LOSS Call & Put Options - O
Credit CONTROL CLOSURE_LOSS  

EXPL – Expiry of Long Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options –F
Credit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET_OFF SOLD_CCY_EQ Call Options – O, F
Credit CONT_ASSET BOT_ASSET  
Debit CONT_LIAB SOLD_ASSET Put Options – O & F
Credit CONT_LIAB_OFF BOT_CCY_EQ  
Debit CONTROL AVG_PREMIUM_PAID Call & Put Options – O
Credit PREMIUM_PAID AVG_PREMIUM_PAID  
Debit EXPIRY_LOSS EXPIRY_LOSS Call & Put Options – O, F
Credit CONTROL EXPIRY_LOSS  
Debit CONTROL DEAL_PREMI­UM_AMT Call & Put Options - F
Credit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

EXPS – Expiry of Short Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options –F
Credit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET_OFF SOLD_CCY_EQ Put Options – O, F
Credit CONT_ASSET BOT_ASSET  
Debit CONT_LIAB SOLD_ASSET Call Options – O & F
Credit CONT_LIAB_OFF BOT_CCY_EQ  
Debit PREMIUM_RECVD AVG_PREMIUM_R­CEIVED Call & Put Options – O
Credit CONTROL AVG_PREMIUM_R­CEIVED  
Debit CONTROL EXPIRY_GAIN Call & Put Options – O, F
Credit EXPIRY_GAIN EXPIRY_GAIN  
Debit BR_­SETLM_BRIDGE DEAL_PREMIUM_AMT Call & Put Options - F
Credit CONTROL DEAL_PREMIUM_AMT  

 

EXRL – Exercise in Long Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE SPOT_STRIKE_DIFF Call & Put Options –F,O
Credit PF_­SETLM_BRIDGE SPOT_STRIKE_DIFF  
Debit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options –F
Credit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET_OFF SOLD_CCY_EQ Call Option – O & F
Credit CONT_ASSET BOT_ASSET  
Debit CONT_LIAB SOLD_ASSET Put Option – O & F
Credit CONT_LIAB_OFF BOT_CCY_EQ  
Debit CONTROL AVG_PREMIUM_PAID Call & Put options – O
Credit PREMIUM_PAID AVG_PREMIUM_PAID  
Debit BR_­SETLM_BRIDGE SPOT_STRIKE_DIFF Call & Put options – O, F
Credit CONTROL SPOT_STRIKE_DIFF  
Debit CONTROL EXERCISE_GAIN Call & Put options – O, F
Credit REALIZED_GAIN EXERCISE_GAIN  
Debit REALIZED_LOSS EXERCISE_LOSS Call & Put options – O, F
Credit CONTROL EXERCISE_LOSS  
Debit CONTROL DEAL_PREMI­UM_AMT Call & Put Options - F
Credit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

EAXS – Assignment in Short Position

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit PF_­SETLM_BRIDGE SPOT_STRIKE_DIFF Call & Put Options –F,O
Credit BR_­SETLM_BRIDGE SPOT_STRIKE_DIFF  
Debit BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Call & Put Options –F
Credit PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit CONT_ASSET_OFF SOLD_CCY_EQ Put Option – O, F
Credit CONT_ASSET BOT_ASSET  
Debit CONT_LIAB SOLD_ASSET Call option – O, F
Credit CONT_LIAB_OFF BOT_CCY_EQ  
Debit PREMIUM_RECVD AVG_PREMIUM_RE­CEIVED Call & Put options – O
Credit CONTROL AVG_PREMIUM_RE­CEIVED  
Debit CONTROL SPOT_STRIKE_DIFF Call & Put options – O, F
Credit BR_SETLM_BRIDGE SPOT_STRIKE_DIFF  
Debit ASSIGN_LOSS EXERCISE_AS­SIGN_LOSS Call & Put options – O, F
Credit EXERCISE_AS­SIGN_LOSS CONTROL  
Debit EXERCISE_AS­SIGN_GAIN CONTROL Call & Put options – O, F
Credit EXERCISE_AS­SIGN_GAIN ASSIGN_GAIN  
Debit DEAL_PREMIUM_AMT BR_SETLM_BRIDGE Call & Put options – F
Credit DEAL_PREMIUM_AMT CONTROL  

EEPL – Exchange of physicals in Long

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE EFP_GAIN Futures
Credit PF_­SETLM_BRIDGE EFP_GAIN  
Debit PF_­SETLM_BRIDGE EFP_LOSS Futures
Credit BR_­SETLM_BRIDGE EFP_LOSS  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE EFP_GAIN Futures
Credit REALIZED_GAINS EFP_GAIN  
Debit EFP_LOSS EFP_LOSS Futures
Credit BR_­SETLM_BRIDGE EFP_LOSS  
Debit CONT_ASSET BOT_ASSET_INCR Futures
Credit CONT_ASSET_OFF SOLD_CCY_EQ_INCR  
Debit CONT_ASSET_OFF SOLD_CCY_EQ_­DECR Futures
Credit CONT_ASSET BOT_ASSET_DECR  
Debit CONT_ASSET_OFF SOLD_CCY_EQ Futures
Credit CONT_ASSET BOT_ASSET  

EEPS – Exchange for physicals in Short

Customer Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE EFP_GAIN Futures
Credit PF_­SETLM_BRIDGE EFP_GAIN  
Debit PF_­SETLM_BRIDGE EFP_LOSS Futures
Credit BR_­SETLM_BRIDGE EFP_LOSS  

 

Own Portfolio

Dr/Cr Accounting Role Amount Tag Applicable
Debit BR_­SETLM_BRIDGE EFP_GAIN Futures
Credit REALIZED_GAINS EFP_GAIN  
Debit EFP_LOSS EFP_LOSS Futures
Credit BR_­SETLM_BRIDGE EFP_LOSS  
Debit CONT_LIAB_OFF BOT_CCY_EQ_INCR Futures
Credit CONT_LIAB SOLD_ASSET_INCR  
Debit CONT_LIAB BOT_CCY_EQ_­DECR Futures
Credit CONT_LIAB_OFF SOLD_ASSET_DECR  
Debit CONT_LIAB SOLD_ASSET Futures
Credit CONT_LIAB_OFF BOT_CCY_EQ  

Note

While reversing the accounting entries will be reversed.

ERVL – Revaluation of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REALIZED_GAIN Debit Futures, Call & Put Options - F
REALIZED_GAINS REALIZED_GAIN Credit  
REALIZED_LOSS REALIZED_LOSS Debit Futures, Call & Put Options – F
BR_­SETLM_BRIDGE REALIZED_LOSS Credit  
CONT_ASSET BOT_ASSET_INCR Debit Futures, Call Options - F
CONT_AS­SET_OFF SOLD_C­CY_EQ_INCR Credit  
CONT_AS­SET_OFF SOLD_CCY_EQ_­DECR Debit Futures, Call Options – F
CONT_ASSET BOT_ASSET_DECR Credit  
CONT_LIAB_OFF BOT_CCY_EQ_INCR Debit Futures, Put Options - F
CONT_LIAB SOLD_ASSET_INCR Credit  
CONT_LIAB_OFF BOT_CCY_EQ_­DECR Debit Futures, Put Options – F
CONT_LIAB SOLD_ASSET_­DECR Credit  
REVAL_ASSET NOTIONAL_GAIN Debit Call & Put Option – O
UNREAL_INCOME NOTIONAL_GAIN Credit  
UNREAL_EX­PENSE NOTIONAL_LOSS Debit Call & Put Option - O
REVAL_LIAB NOTIONAL_LOSS Credit  

ERVS – Revaluation of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REALIZED_GAIN Debit Futures, Call & Put Options - F
REALIZED_GAINS REALIZED_GAIN Credit  
REALIZED_LOSS REALIZED_LOSS Debit Futures, Call & Put Options – F
BR_­SETLM_BRIDGE REALIZED_LOSS Credit  
CONT_ASSET BOT_ASSET_INCR Debit Put Options - F
CONT_AS­SET_OFF SOLD_C­CY_EQ_INCR Credit  
CONT_AS­SET_OFF SOLD_CCY_EQ_­DECR Debit Put Options – F
CONT_ASSET BOT_ASSET_DECR Credit  
CONT_LIAB_OFF BOT_C­CY_EQ_INCR Debit Futures, Call Options - F
CONT_LIAB SOLD_ASSET_INCR Credit  
CONT_LIAB_OFF BOT_CCY_EQ_­DECR Debit Futures, Call Options – F
CONT_LIAB SOLD_ASSET_­DECR Credit  
REVAL_ASSET NOTIONAL_GAIN Debit Call & put Options - O
UNREAL_INCOME NOTIONAL_GAIN Credit  
UNREAL_EX­PENSE NOTIONAL_LOSS Debit Call & put Options - O
REVAL_LIAB NOTIONAL_LOSS Credit  

10.5 Event-wise Accounting Entries for your Customer’s portfolio

In this section we have defined suggested accounting entries for each of the events in the life-cycle of deals involving customer portfolio product.

EOLG - Opening of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call & Put Options -O
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call & Put Options -O

EVRL – Revaluation of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REAL­ISED_GAIN Debit Call & Put Options – F, Futures
PF_­SETLM_BRIDGE REAL­ISED_GAIN Credit Call & Put Options – F, Futures
PF_­SETLM_BRIDGE REAL­ISED_LOSS Debit Call & Put Options – F, Futures
BR_­SETLM_BRIDGE REAL­ISED_LOSS Credit Call & Put Options – F, Futures

ECLG – Closure of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Debit Call Options – O & F, Put Options – O & F, Futures
PF_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Credit Call Options – O & F, Put Options – O & F, Futures
PF_­SETLM_BRIDGE BOOK_VALUE Debit Call Options – O & F, Put Options – O & F, Futures
BR_­SETLM_BRIDGE BOOK_VALUE Credit Call Options – O & F, Put Options – O & F, Futures

EOSH – Opening of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call Option – O, Put Option -O
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call Option – O, Put Option -O

ERVS – Revaluation of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REAL­ISED_GAIN Debit Call & Put Options – F, Futures
PF_­SETLM_BRIDGE REAL­ISED_GAIN Credit Call & Put Options – F, Futures
PF_­SETLM_BRIDGE REAL­ISED_LOSS Debit Call & Put Options – F, Futures
BR_­SETLM_BRIDGE REAL­ISED_LOSS Credit Call & Put Options – F, Futures

ECSH – Closure of Short Positions

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
PF_­SETLM_BRIDGE CLOSE_PRICE_
PREMIUM		 Debit Call Options – O & F, Put Options – O & F, Futures
BR_­SETLM_BRIDGE CLOSE_PRICE_PRE­MIUM Credit Call Options – O & F, Put Options – O & F, Futures
BR_­SETLM_BRIDGE BOOK_VALUE Debit Call Options – O & F, Put Options – O & F, Futures
PF_­SETLM_BRIDGE BOOK_VALUE Credit Call Options – O & F, Put Options – O & F, Futures

EXPL – Expiry of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call & Put Options - F
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call & Put Options - F

EXPS – Expiry of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call & Put Options - F
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call & Put Options - F

EXRL – Exercise in Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE SPOT_STRIKE_DIFF Debit Call Option – O & F, Put option – O & F
PF_­SETLM_BRIDGE SPOT_STRIKE_DIFF Credit Call Option – O & F, Put option – O & F
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call & Put option -F
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call & Put option -F

EAXS – Assignment in Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
PF_­SETLM_BRIDGE SPOT_STRIKE_DIFF Debit Call Option – O & F, Put option – O & F
BR_­SETLM_BRIDGE SPOT_STRIKE_DIFF Credit Call Option – O & F, Put option – O & F
BR_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Debit Call & Put option -F
PF_­SETLM_BRIDGE DEAL_PREMI­UM_AMT Credit Call & Put option -F

EEPL – Exchange of physicals in Long

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE EFP_GAIN Debit Future
PF_­SETLM_BRIDGE EFP_GAIN Credit Future
PF_­SETLM_BRIDGE EFP_LOSS Debit Future
BR_­SETLM_BRIDGE EFP_LOSS Credit Future

EEPS – Exchange for physicals in Short

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE EFP_GAIN Debit Future
PF_­SETLM_BRIDGE EFP_GAIN Credit Future
PF_­SETLM_BRIDGE EFP_LOSS Debit Future
BR_­SETLM_BRIDGE EFP_LOSS Credit Future

ERVL – Revaluation of Long Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REAL­IZED_GAIN Debit Futures,Call & Put Options –F
PF_­SETLM_BRIDGE REAL­IZED_GAIN Credit  
PF_­SETLM_BRIDGE REAL­IZED_LOSS Debit Futures,Call & Put Options –F
BR_­SETLM_BRIDGE REAL­IZED_LOSS Credit  

ERVS – Revaluation of Short Position

Accounting Role Amount Tag Dr./Cr. Indicator Applicable
BR_­SETLM_BRIDGE REAL­IZED_GAIN Debit Futures,Call & Put Options –F
PF_­SETLM_BRIDGE REAL­IZED_GAIN Credit  
PF_­SETLM_BRIDGE REAL­IZED_LOSS Debit Futures,Call & Put Options –F
BR_­SETLM_BRIDGE REAL­IZED_LOSS Credit