Gain / Loss Management manages the realized and unrealized gains and loss positions for accounting or tax purposes.

In conjunction with the Fund Ledger processing and Jurisdictional Tax Framework, this:

  • Overcomes the need to maintain separate ledgers for accounting or tax, and eliminates the overheads of manual ledger reconciliation through the single record ledger framework for investment holdings, accounting gain / loss or tax gain / loss calculations
  • Manages automatic updates to purchase cost on application, and realized gains / losses upon sale or redemption

Gain / loss workpapers, journals and Account Views for realized gains and loss positions are instantly updated when orders are processed regardless of whether these originate from within pControl or are imported as transactions or via manual entry.

This means that solutions such as NAV / Unit Pricing, Income Distributions, and Tax Expense are instantly updated with accurate gains loss positions, as transactions originate from Discretionary Portfolio Management, Cash Allocation & Rebalancing or Unitized Order Management.

Parcel Lot & Cost Base Management

  • 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 optimization is available for all investments held by a unitholder or selected individual investments

Workpaper Navigation

  • Online workpapers can be instantly viewed 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:
    • Realized Accounting grouped by sale date, sale parcel, asset, entity or investment type
    • Mark to Market grouped by asset, entity or investment type
    • Realized Tax grouped by sale date, sale parcel, gain / loss rule, asset, entity or Gain Not Applicable to Non Residents (GNANR)
    • Unrealized Tax grouped by gain / loss rule, asset, entity or GNANR
  • Ability to navigate from gain / loss workpapers to Transaction records, and then to Account positions and vice versa
  • Values instantly reported in Account Views with the ability the navigate from these reports back to the workpapers
  • Values instantly reported in Fund Ledger to be available for all dependent downstream processing