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Add-On Module Overview

Market Value Calculator

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Many organizations that offer trust and philanthropy services have a requirement to produce financial statements based on market values. This could be either for client reporting or for auditor requests. These financial statements must reflect the actual market value of all assets held and sometimes reflect the value of the interest and dividends due as of the report date.

In order to produce these reports you must adjust the balance sheet and income statement to record the unrealized gain or loss through the reporting date for all assets. This is usually recorded as one amount per trust account and must be recalculated each reporting period. You may also want to adjust the books to record the current value of interest receivable and dividends that have been declared but not paid.

This has always been a painstaking effort and usually takes a great deal of time when you are producing market value reports for multiple parties. That is, until now…

FUNCTION:


The Market Value Calculator is run as a first step in Balance Sheet or Income Statement production. For each trust account, it calculates the unrealized gain or loss and creates a transaction ready to proof and post.

If you want the reports to show interest and/or dividends that are earned but not received as of a certain date, this module can create the entries for those accrual amounts. The income accruals are calculated separately by asset type.

This module leverages the calculation work done by Dividend Mapping and Income Accrual modules in order to save processing time.

Market Value Calculator automatically creates transactions that will reverse the market value adjustments and accruals from the previous period.


Options include:
  • unrealized gain/loss calculations for all assets or specific asset types
  • including or excluding accrued interest
  • including or excluding accrued dividends

BENEFITS:


   The Market Value Calculator module adds value to the core system by …

   
 
  • updating the market value ledger accounts so that when the Balance Sheet and Income Statement are produced from the Crystal Reports Menu, all amounts are ready to print.
     
  • eliminating the opportunity for human error by automating the calculation and creation of adjusting entries.
     
  • greatly reducing man-hours required to perform these intensive calculations for each holder.

PREREQUISITE MODULES:


 
  • Dividend Mapping – creates pending transactions that will be analyzed to select accrual transactions as of the reporting date. This is a prerequisite only if you want to accrue dividends.
     
  • Daily Income Accrual – creates pending transactions that will be analyzed to select accrual transactions as of the reporting date. This is a prerequisite only if you want to accrue daily income.

COMPLEMENTARY MODULES:


 
  • Interactive Data Interface – will provide market values for securities, dividend announcements and daily factors that are used by Market Value Calculator
     
  • Statement Wizard – can be configured to include the accrued dividend and interest amounts that are prepared by Market Value Calculator