From deal execution to finality, FxOffice Finance and Accounting modules automates profit and loss treatment of unrealized P&L of outstanding deals, realized profit from trade settlement and revaluation of any FX position exposures. Having access to live market data and real time FX rates, FxOffice will mark-to-market ledgers and sub-ledgers making profit reporting always available. Revaluation procedures are automated and can run unattended making daily Financial Statements reporting possible.
Treatment of unrealized profit and loss occurs on an accrual basis. FxOffice will restate unpaid and unsettled foreign currency receivables and payables to current market rates while making the appropriate ledger entries to recognize unrealized gains or losses. Subledger granular reporting allows for justification and auditing of unrealized profit or loss balances. In addition, unsettled foreign currency receivables and payables that are forward trades are mark-to-market inclusive of remaining forward points inline with FX derivative accounting best practices.
Realized gains and losses are recorded for each transaction as accrued receivables and payables are extinguished. Each FX trade therefore recognizes a realized profit or loss component as a function of the current market FX rate compared to the original exchange rate of the transaction.
Any foreign currency exposures are captured in end of day revaluation procedures of the balance sheet. FxOffice can maintain separate income ledger accounts for realized, unrealized and revaluation gains and losses while further splitting derivative and non-derivative related accounts.