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.

• Section 10.1, "ETD Events"
• Section 10.2, "Amount Tags"
• Section 10.3, "Accounting Roles"
• Section 10.4, "Event-wise Accounting Entries for your Own portfolio"
• Section 10.5, "Event-wise Accounting Entries for your Customer’s portfolio"

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