Realized gain (loss) on foreign exchange

#1

I have four marketable security working papers that I have selected “yes” to combine the balances in the broker section since they all pertain to the same broker account. When the realized gain (loss) on foreign exchange is calculated on a purchase, when foreign tax is paid or cash transfer out of the broker, does it use the combined f/x rate of all four of the working papers?

The reason for the question is that on one of the working papers the cash balance is negative and the working paper doesn’t calculate the realized gain (loss) on a purchase or when foreign tax is paid. If the working papers are truly combined shouldn’t this calculate properly?

#2

Before we look into the calculation, can you please confirm that only on 1 of the marketable securities working papers you have selected to:

  1. include amounts from other marketable securities working papers
  2. you have selected which working paper balances are to be included in the securities summary?

These questions should only be answered on 1 working paper in the group you are combining.

#3

Only the first marketable securities working paper I have said yes to “do you want to include amounts from other marketable security working papers on this working paper” as well as to the question “do you wish to combine balances in broker reconciliation section”

#4

Realized gains/losses on foreign exchange is calculated for each marketable security (MS) working paper individually. This amount cannot be calculated or combined over multiple MS working papers. You will have to use alternative means to calculate realized gain/loss on foreign exchange if there are more than 50 securities involved (max for one MS working paper).

#5

Would a viable solution be to add more securities to one working paper? I have three companies that I use four working papers for one USD broker account. I’m sure it is a lot of work but would it be safe to assume that there are other Jazz-it! users that use multiple working papers for one foreign broker account?

#6

Do you know if they are working on a solution to the problem at this time?

#7

Hi Ladorne,

At this time there are no plans to add more securities to the current 50 securities on each working paper.