Deal Level Fluc for Prem/Disc

INC000004491262 aqt-30887 Eskom

We have a few foreign bonds. As it is a bond, the deal will have an Unamortised discount amount. I have noticed that each deal only does a mark to spot on the Face value and the Interest payable accounts but not the Unamortised discount. There is however the residual fluctuation on the Unamortised discount account which results in the correct value.

This is a legacy gap but is still working as designed.

Capital – 
Capital disc/premium was specifically excluded from deal level translation (on assumption this should be on a cashflow date basis).

However, the entire book value should be translated so the capital element should be done at an account level (not deal level)

Why was this done this way?
When putting in deal level exchange fluc there were a couple of generic rules
If fluc date is > cashflow date then calculate realised gain loss
Do not process translation when realised gain loss has been calculated.

When processing this methodology for the first time it was noticed that fluctuation on the capital amortization stopped after the first posting. i.e. when you posted the first amortization amount, and then ran fluc, a realized gain loss would be calculated and no further fluctuation would occur due to above rules.

A call was made rather than to code specifically for this scenario, to instead exclude capital from the deal level fluctuation process. This would be revisited if clients screamed, and the regions were notified of the exclusion accordingly.

The side effect however is that clients must have account level exchange fluc turned on for capital accounts