In the January 2015 release version 4.9 Class introduced new functionality for foreign securities that enables Class to automatically workout the exchange rate and daily prices of foreign securities. If you already have foreign securities set up in Class this page explains how to convert them into the new foreign securities.
Foreign Investment Accounts
For foreign listed securities, Class has always recommended users to create a foreign investment asset and its unique code by
Navigate to Business level > Investment > New Security
Once created, it may look like the following:
For foreign securities that have been set up this way the conversion is very simple.
Navigate to Fund level > Investments > Browse Holding Accounts
- Select the existing foreign asset and open it up
- Click Edit
- Click on Change next to the Security Issue
- Start typing the name of the foreign security and a box will pop up (see screen shot below):
- Select the radio button Yes to include foreign markets
- Select the relevant security
Ensure that the Reporting Categories are displayed as follows:
Shares in Listed Companies – Foreign (default)
Tax Return Classification
Overseas Shares (default)
Capital Gain Classification
Shares & Units –Other Shares (default)
Foreign Investment Assets (default)
If they are not displayed as above, check the Enable Editing of Reporting Categories and amend the categories accordingly.
- Click Save to save the new details. This will then update the Code and the description and bring in the security prices for this security.
If you already have an investment code FOX for example from ASX listed securities, then you may need to change the Code from FOX to FOX_XNAS, as long as the code is unique within the fund.
Custom Holding Accounts
If you have set up your foreign securities as custom holding accounts you will need to follow this process to convert the accounts to the new foreign security accounts.
Step 1 – Download the Excel Transaction Loader
Navigate to Business level > Transactions > Excel Transaction Loader
- Select the Brand from the drop down list
- Click the Click Here button to download the transaction loader
Step 2 – Enter the details of the Foreign Securities
Open up the transactions loader and go to the portfolio tab. Enter in the details of the security. Ensure that the effective date is the date you would like the securities to be converted at (usually 1 July 20XX). Also enter the original purchase date of the asset (per the Unrealised CGT Report) in the CGT date field. Note the Exchange field is required for foreign stock exchange. The screen shot below shows a correctly completed loader.
Once the foreign stock exchange is selected, the amount entered must be in the source currency (e.g. the corresponding trade currency for NASDAQ is US dollars).
Note: A reverse calculation to determine the source currency may be required. For example, the Australian dollar equivalent = $6,000 and Exchange rate on the data of the transaction: 1USD=1.200AUD, then the original USD amount = 6,000/1.2 = 5,000.
Step 3 – Enter The Custom Holding Adjustments
Because the foreign security has been created as a custom holding account, you will need to adjust the amount that is in the custom account down by the same amount of the cost base of the assets. The cost base of the custom holding account should equal the cost base of the foreign securities. If there are any discrepancies you can adjust this later.
Go to the “Custom” tab in the excel transaction loader, and fill in all required fields. It should look similar to the screen shot below:
Step 4 – Load the Transactions in to Class
Once all of the required information is entered in to the transaction loader, you will then need to load the files into Class. To do this, go to the Overview Page, and hit the Submit button for both the Custom tab, as well as the Portfolio tab.
Step 5 – Match the Transactions
Once the files are loaded successfully, the transactions will appear in the match transactions screen in Class. Match off the acquisition transactions against the cash out amount from the Custom Holding Account.
Remember the amount leaving the Custom Holding Account should be the same as the total of the cost bases in the portfolio tab.