Goal
To ensure income from equity and fixed income securities is correctly accrued in the fund for valuations .
General Process
Income from Equity – Dividend Income
➢ Run the Dividend Activity in System
➢ Check the results in the Dividend System
➢ Tie out dividend income/expense to trial balance
➢ Answer all dividend related alerts on NAVAlert
Income from Fixed Income – Interest Income and Amortization
➢ Run Income Book
➢ Tie out interest income/expense to trial balance
➢ Answer all income related alerts on NAVAlert
Control/Procedure
Income from Equity – Dividend Income
➢ Check to ensure all dividend setups are with the appropriate Apps record (confirmed and second-sourced by Client Provided). If not, ensure appropriate research is completed and necessary backup is included
Income from Fixed Income – Interest Income and Amortization
➢ Check to ensure all fixed income securities e securities are set up with the correct accrual and amortization parameters in APPLICATION .
➢ Check to ensure all variable rates are up-to-date
➢ Check to ensure all daily changes and income hits are reconciled
Accounting entries :
Fixed Income Security Interest Accrual
Dr Interest Receivable A/c ............xxxx
Cr Interest Income A/c................xxxx
Dividend Income Accrual
Dr Dividend Receivable A/c...............xxxx
Cr Dividend Income ..................xxxx
Income Tax Accrual
Dr Interest or Dividend Tax Expense ...........xxxx
Cr Interest or Dividend Tax Expense Accrual ......xxxx
Fixed Income Discount Amortization
Dr Cost of Investment – Fixed Income A/c...........xxxx
Cr Amortization Income A/c.........xxxx
Fixed Income Premium Amortization
Dr Amortization Income A/c.........xxxx
Cr Cost of Investment – Fixed Income A/c...........xxxx
Note:- These are the all possible entries for the Income Process , but you may expect the many more entries as well in below cases .
Income Received in Advance
Outstanding Income
Accrued Income - we have covered already
Or could be any other case a part from the above .
See the Full sessions on our YouTube Channel
Corporate actions.
Private Equity-03 https://youtu.be/Wip9pwV7fZU
Derivatives https://youtu.be/iV2p9a-TUFU
Cash Recon https://youtu.be/F6H-wgwuDa8
Cash Dividend https://youtu.be/F6H-wgwuDa8
Visit at - www.getmeupskills.in for material and Live sessions.
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