Gain / Loss Management

pControl Gain / Loss Management calculates the realised and unrealised gains and losses for tax and accounting designed for individual funds, interfunded investment structures or investor accounts.

Gain / Loss Management maintains a single parcel lot record for investment holdings, accounting gain / loss calculations and tax gain / loss calculations, which overcomes the need for organisations to maintain separate ledgers and eliminates the overheads of manual reconciliation between ledgers.

pControl’s transaction framework ensures that purchase cost is automatically updated on applications, and realised gains / losses are automatically updated upon redemption.  Workpapers, journals and Account Views for realised gains and loss reporting are instantly updated when orders are processed regardless of whether these originate from Cash Allocation & Rebalancing, imported transactions or manual entry.

Features

  • Independent selection of parcel lot methods for accounting and tax, including:
    • Max Gain
    • Max Loss
    • FIFO
    • LIFO
    • Average Cost
  • Calculates gain / loss when closing both short or long positions.
  • Calculates gain / loss and cost base values for all entities within an order.  Values are attached to the order and maintained in accounts to simplify reporting.
  • Automatic cost base journal updates upon asset purchase and gain / loss journals automatically created upon asset disposal.
  • Cost base,  gain / loss journals and underlying work-papers are automatically reversed and recreated when transactions are adjusted, deleted or back dated.
  • Cost base and unit base adjustment for compliance with accounting standards or tax legislation is managed by pControl’s transaction framework allows for simple implementation where new legislation is introduced.
  • Tax lot optimisation is available for all investments held by a unitholder or selected individual investments.
  • Unrealised gains reporting for tax and accounting are managed separately and processing may be integrated with other pControl modules such as NAV / Unit Pricing and Tax Expense Calculations.
  • Online workpapers are instantly viewable for individual fund entities or consolidated fund group, providing all calculation details at summary and drillable levels.
  • Different sub-totaling is available based on grouping levels as follows:
    • Realised Accounting grouped by sale date, sale parcel, asset, entity or investment type
    • Mark to Market grouped by asset, entity or investment type
    • Realised Tax grouped by sale date, sale parcel, gain / loss rule, asset, entity or Gain Not Applicable to Non Residents (GNANR)
    • Unrealised Tax grouped by gain / loss rule, asset, entity or GNANR
  • Ability to navigate from gain / loss work papers to transactions and vice versa. Can also navigate from Transactions to Account positions.
  • Values instantly reported in General Ledger or Account Views with the ability the navigate from these reports back to the workpapers.

Processing

Gain / Loss Management is fully integrated within the pControl platform, and may be activated in conjunction within any other module within the pControl suite.

Gain / Loss Management is designed to complement Cash Allocation & Rebalancing, General Ledger,  Distribution Calculations and Tax Expense Calculations.

Solutions

The Gain / Loss Management capability is included within the following solutions: