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valuation of foreign exchange forward with NPV split for interest vs FX impact?

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Hello,

 

I have the following business requirement regarding the accounting treatment of the valuation of a foreign exchange forward deal :

 

1. during the lifetime of the deal

   

step1. valuation

          the deal should valued at its NPV using the swap points curve (table AT15) => that gives the "VALUE"

 

     BUT


step 2. the posting of the deal's value should be SPLIT into TWO components

               a) component 1 = linearly amortized swap points since deal date +2   until valuation date     => to be classified to interest result

               b) component 2 =  VALUE - component 1                                                                                => to be classified to unrealized fx result

 

Comment.

So, in fact it is some hybrid combination of the two SAP standard valuation methods

               a) spot/spot + swap accrual + swap valuation (but NO NPV calculation) 

               b) NPV calculation (without any split in components)

 

 

2. at maturity

     realized fx result :     calculation based on deal spot rate versus spot rate at maturity

     interest result :          calculation based on deal spot rate vs deal forward rate

 

 

Don't see how this "mixted behavior" can be achieved by customizing the valuation process.

 

Please help.

 

Best regards,

 

Carl


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