Position Components for Adjustments with Valuations

The handling of position components for adjustments to a valuation depends on the holding category.

Valuation of non-monetary positions

Non-realized gains and non-realized losses are position components in the subledger of Transaction Manager .

They can be positive or negative.
The value adjustment is managed on the following position components :
- Gains value adjustment
- Losses value adjustment
The gains value adjustment adjusts the non-realized gains and the losses value adjustment adjusts the non-realized losses.

Note:

The gains and losses value adjustment can both be positive and negative.

Value adjustment (VAD) = Gains value adjustment + Losses value adjustment

OCI (P-GAAP) = OCI (H-GAAP) – value adjustment

Rules for calculating the clearing components for valuations of non-monetary positions:

	Case 1	Case 2	Case 3	Case 4	Case 5	Case 6
	OCI (H-GAAP) ≥ 0			OCI (H-GAAP) < 0
	VAD > 0		VAD ≤ 0	VAD < 0		VAD ≥ 0
	VAD ≤OCI (H-GAAP)	VAD >OCI (H-GAAP)		VAD ≤OCI (H-GAAP)	VAD >OCI (H-GAAP)
Position Components
VAD Gains	VAD	OCI (H-GAAP)	VAD	0	VAD – OCI (H-GAAP)	0
VAD losses	0	VAD – OCI (H-GAAP)	0	VAD	OCI (H-GAAP)	VAD
Calculation of Delta VADS (Flows)
VAD Gains	+ VAD losses (old)	+ OCI (H-GAAP) – VAD Gains (old)	+ VAD losses (old)	- VAD gains (old)	+ VAD losses (old) - OCI (H-GAAP)	- VAD gains (old)
VAD losses	- VAD losses (old)	+ VAD Gains (old) – OCI (H-GAAP)	- VAD losses (old)	+ VAD gains (old)	+ OCI (H-GAAP) – VAD losses (old)	+ VAD gains (old)
	Example	Example	Example	Example	Example	Example

Valuation of monetary positions

The maturity of the valuation of monetary positions is similar to the valuation of non-monetary positions . After the named valuation steps, a linear amortization process also takes place.