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### Example of Calculations in a Personal Financial Statement

##### Assets

Asset Item

Asset Type

Amount

Currency

Ownership Percentage

A1

Real estate

100,000

EUR

100%

A2

Deposit account

2,000

EUR

100%

##### Income

Income Item

Income Type

Frequency

Amount

Currency

I1

Net salary

Monthly

30,000

EUR

Not applicable

I2

Rental income

Monthly

2,000

EUR

I3

Investment income

Yearly

100

EUR

Not applicable

##### Liabilities

Liability Item

Liability Type

Current Balance

Currency

Balance Amount Percentage

TDS Exclusion

L1

Personal loan

20,000

EUR

Not applicable

Not applicable

L2

Bridge loan

30,000

EUR

2,5%

Not applicable

##### Expenses

Expense Item

Expense Type

Frequency

Amount

Currency

E1

Cost of living/consumption

Monthly

5,000

EUR

Not applicable

Not applicable

E2

Operating cost of vehicle

Monthly

1,250

EUR

Not applicable

Not applicable

E3

Maintenance of rented property

Monthly

1,500

EUR

Not applicable

A1

E4

Installment payment

Monthly

3,500

EUR

L1

Not applicable

E5

Property tax

Monthly

1,250

EUR

Not applicable

A1

##### Calculations executed by the system

Net Excess/Shortfall = Rental Income (I2) — Expense from real estate asset (E3+E5) = 2,000 – (1,500+1,250) = –750 (shortfall)

Monthly Commitment = (E1+E2) (∑non-linked expenses) + (E3+E4+E5) (∑linked expenses) + (L2x2,5%) (Balance amount percentage of liability where TDS exclusion indicator is not set) — Net shortfall = 5,000 EUR + 1,250 EUR + 1,500 EUR + 3,500 EUR + 1,250 EUR + 750 EUR + 750 EUR = 14,000 EUR.

Monthly Income = I1 + I2 + I3 = 30,000 EUR + 2,000 EUR + 100 EUR = 32,100 EUR

TDSR = (monthly commitment/monthly income) x 100 = (14,000 EUR / 32,100 EUR) x 100 = 43.61

Note

Steps to calculate the monthly commitment and monthly income

Monthly commitment

Monthly commitment = ∑of non-linked expenses + ∑ of linked expenses where TDS exclusion indicator is not set + Net shortfall (if available)

• Non-linked expenses are expenses that are not linked to any liability.

• Linked expenses are expenses that are linked to a liability and that don’t have the TDS exclusion indicator set.

• In the determination of the net excess/shortfall two cases are possible:

• The ownership percentage is 100%.

Net Excess/Net Shortfall = Rental income – ∑ Associated expense – Mortgage payment (expense type) – Buffered mortgage payment (25% of mortgage payment)

Note: Expense type 002 or installment payment is considered for this.

• The ownership percentage is less than 100%.

Net Excess/Net Shortfall = Rental income – Buffered mortgage payment (25% of mortgage payment expense type)

The system calculates the net excess/shortfall for all assets of type Real Estate. The net excess/shortfall is determined using business rules that consider the ownership percentage, the rental income and all expenses associated or linked to the Real Estate asset. For Real Estate assets, the net excess/shortfall value is calculated to determine if the asset is to be considered in the monthly commitment or monthly income. If the calculation results in a positive value (net excess), it is added to the monthly income. If the calculation results in a negative value (net shortfall), it is added to the monthly commitment.

End of the note.

Monthly Income

Monthly income = ∑ of income + net excess (if available)