International Portfolio Accounting

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:11/13/2019
  • Course Duration: 1 Day
  • Level: Intermediate
  • Prerequisites: Knowledge of PM
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual

International Portfolio Accounting

As investors seek to diversify their portfolios by expanding into global markets, the need to perform accounting for international holdings has become more important.  This one-day seminar introduces participants to the accounting requirements for foreign international portfolios.  The course reviews Local and Base currency concepts, and covers the methodology for establishing cost basis in multi-currency trading.  The calculation of realized and unrealized gains and losses is addressed for portfolios consisting of non-domestic securities and cash.

Who Should Attend:

This class is designed for those who work at a global Securities Trading Organization, i.e., a company that buys, sells and holds securities for its own account, or holds securities in safe custody on behalf of its clients.  The course would be of particular interest to business analysts and individuals who work in the accounting, operations, portfolio services or reporting areas who are responsible for generating periodic multi-currency statements.

Prerequisite: Familiarity with domestic portfolio accounting

Course Objectives                                     

By the end of this course, participants will:

  • Have a comprehensive knowledge of the accounting requirements for assets held in multiple currencies
  • Understand the elements of a multi-currency trade
  • Be able to identify the unique accounting associated with international portfolios
  • Be familiar with the Trade Date statement package that is provided to holders of international portfolios – in terms of content and format.

 

Agenda

Section 1:  Review of Foreign Exchange

  • FX Rates
  • Spot and Forward Rates
  • FX Transaction: Buy Currency and Sale Currency

Section 2:  Characteristics of Multi-currency Activity

  • Local and Base Currencies
  • Settlement and Funding Currencies
  • Country of Issue
  • Cost Basis in Local and Base currencies
  • Foreign Cash – Balances and Cost Basis

Section 3:  Valuations and Unrealized G&L

  • Market Value in Local and Base Currencies
  • Market Value of Foreign Cash
  • Unrealized Gain/Loss Calculations
  • List of Holdings – Portfolio View
  • Bifurcation

Section 4:  Accounting for Sales

  • Realized G&L on Sale
  • Multi-currency Impact on Cost Basis
  • “Sale” of Cash

Section 5:  Trade Date Accounting – Review of Concepts

  • Overview
    • Trade Date vs. Settlement Date Reporting
    • Payables and Receivables
    • Income and Accruals
  • Multi-Currency Characteristics – Currency Gain/Loss
    • Between Trade and Settlement Dates
    • Gain/Loss on Receivables and Payables
    • Income
    • Disposition of Cash

Section 6:  Multi-Currency Statement Package

  • Summary Schedules
    • Summary of Unrealized Gains/Losses
    • Assets and Liabilities
    • Reconciliation of Assets
  • Detail Schedules
    • Acquisitions
    • Dispositions
    • Currency Transactions
    • List of Holdings
    • Trade Receivables and Payables
    • Income Statement
    • Other Receipts and Disbursements

 

 

Instructor

  • Meyer Grumet has over 30 years of experience in the financial industry, focusing on the design and development of multi-currency securities processing, trading and custody systems. As a co-founder of Cambridge Technology Group, he developed a multi-currency accounting software package that was successfully installed at financial institutions in the US and abroad.  Before starting his own …
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