Valuation of Costs, Security, Not Affect. P/L, in LC (Sim.) 

Technical name: 0CFMP0903

CFM Transaction Manager
Reporting for a given date / evaluation of positions for the key date

The position values are subdivided into a series of independent, original position components.

The position management procedure you have assigned determines the valuation steps for key date valuation (security valuation, foreign currency valuation and/or index valuation). The valuation may be based on a market price (securities) or on a defined net present value (money market, foreign exchange, derivatives, loans). Any capitalized costs are written up or down proportionately.

Certain accounting regulations (such as IAS) prescribe that any unrealized price/rate gains or losses resulting from a key date valuation must be disclosed as separate items (OCI – "Other Comprehensive Income"). If opposing write-ups or write-downs result from later key date valuations, they must be cleared against the OCI position before they can be posted to the profit and loss account.

The position component valuation of capitalized costs, security, not affecting P/L contains the balance of these revaluation reserves for the costs, based on the security valuations to date.

By contrast, the key figure valuation of capitalized costs, security, not affecting P/L, simulation contains the fictitious balance for these revaluation reserves for the costs, based on the security valuations to date – as if a key date valuation had been carried out for the evaluation key date.