Disclaimer: Canopy is an Analytics company and does not specialize in fields of accounting and taxation. These calculations are intended to give a customer a sense of how their financial statements would look like. They are offered as a convenience to our customers and are not intended to replace your accounting process or be used for reporting purposes. You should consult your accountant and tax advisor for any accounting, regulatory reporting or taxation matters.

Introduction

Canopy Financial Statements Module (CFSM) can be used to create basic Financial Statements. This module takes all the data inside Canopy Analytics and creates journal entries, ledgers and financial statements. See example output attached here.

Setup

CFSM will create the following tables (if they do not exist already)

Chart of Accounts

These are the backbone of CSFM. CSFM will automatically create a complete set of accounts as follows:

Name Account Type Details
Bank Accounts Current Assets Canopy will automatically create one account for every currency account in Canopy. e.g. canopy_demo332-ibkr-01-hkd-01. We create a separate account for each currency account (even though it ends up being a lot of accounts) because we also track the account balances and reconcile them back with Canopy Analytics as a check to see if all cash entries were processed
Asset Accounts Current Assets Canopy will automatically create one account for every currency account in Canopy. e.g. canopy_demo332-ibkr-01-hkd-01. We create a separate account for each currency account (even though it ends up being a lot of accounts) because we also track the account balances and reconcile them back with Canopy Analytics as a check to see if all cash entries were processed
Loan Current Liabilities One Account for all the Loans taken by the customer
Various Revenue Currently these are Distributions, TradingGainLoss, MiscIncome and Interest
Various Expense One for each type of expense that needs to be tracked. Currently these are Loan Cost and MiscExpense
ShareCapital Equity Represents the shareholders equity in the account. All Inflow, Outflow, Transfer In and Transfer Out transactions hit this account

A sample chart of accounts is here.

Journal Entries for Purchase and Sale of Stock in Foreign Currency

Journal entries are created by going through the flash_blotter in chronological order. Let’s take the following transactions for NTT (a JPY denominated stock). These are for the canopy_demo account (where the base currency is USD).

Background

The flash_blotter entries are as follows

flash_blotter_id ticketref traded_on settled_on ticker quantity trade_price trade_type contract_currency ccy_account_code related_security_ticker user_asset_class day_1_fxrate_trade_ccy base_ccy
1805 DEMO1-012568 31-Dec-13 31-Dec-13 9432_JP 3100 5660 Buy JPY demo_equity_managed_cssg01_jpy_01 Equity 0.009497 USD
1953 DEMO1-012183 8-May-14 12-May-14 9432_JP -1600 5648.953 Sell JPY demo_equity_managed_cssg01_jpy_01 Equity 0.009837 USD
3144 DEMO1-012187 29-May-14 3-Jun-14 9432_JP -1500 5989.933 Sell JPY demo_equity_managed_cssg01_jpy_01 Equity 0.009824 USD
3152 DEMO1-012287 27-Jun-14 27-Jun-14 Cash 236271 0 Dividend JPY demo_equity_managed_cssg01_jpy_01 9432_JP Cash 0.009862 USD

As we can see this stock was purchased on 31 Dec 2013 and then sold in 2 different lots and also earned a dividend. The market prices and fxrates moved for each transaction.