Foreign Currency Profit and Loss Calculation Summary Tool
Calculation Methods and Examples
Important Matters Concerning Foreign Currency Deposits
The calculation of the "Statement of Foreign Currency Profit/Loss (Simple Calculation Tool)" is based on Sony Bank's own calculation methods in accordance with the "method equivalent to the weighted average method." The following is an explanation and example related to the "average purchase rate" and "foreign exchange profit/loss" calculation methods.
Average purchase rate calculation method
The average purchase rate is the average value of Yen required to purchase one unit of foreign currency. The following calculation is performed whenever a deposit is made into a foreign currency-denominated deposit (e.g. buying foreign currencies, etc.).
Average purchase rate = Total book value ÷ Foreign currency balance
After the number is calculated, if the number in the third decimal place is greater than or equal to 1, the number in the second decimal place will be rounded up.
Total book value is the amount of Yen required to purchase a foreign currency. The following calculation is made for each foreign currency transaction.
The total book value = the book value before the transaction ± the book value at the time of transaction
The book value at the time of transaction
In the case of a profit, this is the amount of the increase of the total book value at the time of deposit in a foreign currency.
In the case of a loss, this is the amount of the decrease in the total book value at the time of withdrawal from a deposit in a foreign currency.
Deposits into your foreign currency-denominated deposits are indicated by a plus (+)
Withdrawals from your foreign currency-denominated deposits are indicated by a minus (-)
Foreign exchange profit/loss calculation method
Foreign exchange profits/losses are the amount of profits or losses caused by changes in exchange rates that occur between the time you make a deposit or withdrawal using a foreign currency-denominated deposit. The following calculation is performed when withdrawing from a foreign currency-denominated deposit.
Foreign exchange profit/loss = Yen-equivalent transaction amount - The book value at the time of transaction
Foreign exchange profits/losses are not calculated in the following cases:
- When making a deposit from your Foreign currency savings account to a Foreign currency time deposit (service is only available in Japanese) in the same currency
- When canceling a Foreign currency time deposit (including maturity cancelations)
- When making a withdrawal from a Foreign currency deposit in the currency of the deposit
Yen-equivalent transaction amount is the value of the transaction after converting the foreign currency into Yen.
If a transaction is made between foreign currencies, the Yen-equivalent transaction amount is calculated using the withdrawn currency amount x mid rate (TTM) against Yen at the time of the transaction.
If one of the involved currencies is Yen, the amount used is the actual Yen transaction amount.
The book value at the time of transaction
In the case of a profit, this is the amount of the increase of the total book value at the time of deposit in a foreign currency.
In the case of a loss, this is the amount of the decrease in the total book value at the time of withdrawal from a deposit in a foreign currency.
Book value at the time of transaction - making a deposit
Calculation method
- For transactions made against Yen: Withdrawal amount from Yen savings account.
- If you are receiving foreign currency at the maturity of a Currency-linked deposit (Yen start type) (service is only available in Japanese): After-tax total of principal and interest
- For transactions made between products in the same foreign currency: Equivalent Yen amount using the average purchase rate of the account from which the funds were withdrawn.
- For all transactions other than the above: Equivalent Yen amount using the TTM against Yen at the time of the transaction.
Calculation examples
Please refer to the following examples when making a deposit into your Foreign currency savings accounts.
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Buying foreign currencies in Yen from your Yen savings account | Withdrawal amount from your Yen savings account |
| Receiving foreign currencies at the time of maturity of your Currency-linked deposit (Yen start type) (service only available in Japanese) | After-tax total of principal and interest |
| Cancelation of your Foreign currency time deposits (mid-term or maturity) (service is only available in Japanese) | Withdrawal foreign currency amount x average purchase rate for the withdrawn currency |
| Cancelation of your Currency-linked deposit (mid-term and maturity) (foreign currency start type) (service is only available in Japanese)
When receiving funds in a foreign currency |
|
| Buying foreign currencies using your Foreign currency savings account | Withdrawal foreign currency amount x TTM of the withdrawn currency (e.g. When purchasing Euros from US Dollars: Withdrawal amount in US Dollars x TTM of US Dollars against Yen) |
| Interest on Foreign currency deposits | Foreign currency interest after the deduction of withholding tax (foreign currency) × TTM of the relevant currency against Yen at the time of interest payment |
| Cancelation and redemption of investment trusts (Foreign currency-denominated) (service is only available in Japanese) and foreign currency MMFs (service is only available in Japanese) | Deposited foreign currency amount x TTM of the relevant currency against Yen at the time of transaction |
| Distributions of investment trusts (Foreign currency-denominated) (service is only available in Japanese) | |
| Making deposits using Sony Bank WALLET | |
| Deposit from credit card with dual currency payment functionality (service is only available in Japanese) | |
| Internal transfers from FX margin trading (service is only available in Japanese) | |
| Receiving an Incoming foreign currency remittance | |
| Receiving Foreign currency fund transfers between Sony Bank accounts | |
| Cancelation, redemption, and dividends of Foreign currency security token (service is only available in Japanese) |
Please refer to the following examples when making a deposit into your Foreign currency time deposit (service is only available in Japanese).
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Applying for a Foreign currency time deposit when making withdrawals from your Yen savings account | Withdrawal amount from your Yen savings account |
| Applying for a Foreign currency time deposit when making withdrawals from your Foreign currency savings account | Withdrawal amount of the foreign currency x average purchase rate of the withdrawing account (e.g. When making a deposit into a Foreign currency time deposit (Australian dollar) from your Foreign currency savings account (Australian dollar): Withdrawal amount of your Foreign currency savings account (Australian dollar) x average purchase rate of your Foreign currency savings account (Australian dollar) |
| Interest on Foreign currency time deposits | Foreign currency interest amount after deduction of withholding tax (foreign currency) × TTM of the relevant currency against Yen at the time of interest payment |
Please refer to the following example when making a Currency-linked deposit (Yen start type) (service is only available in Japanese).
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Application for a Currency-linked deposit (mid-term or maturity) (foreign currency start type) | Withdrawal amount of the foreign currency x average purchase rate of the withdrawing account |
Book value at the time of transaction - making a withdrawal
Calculation method
Equivalent Yen amount using the average purchase rate of the account from which the funds were withdrawn.
Calculation examples
Please refer to the following examples when making a withdrawal from your Foreign savings accounts.
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Selling foreign currencies into Yen savings account | Withdrawal amount of the foreign currency x average purchase rate of the withdrawing account |
| Selling foreign currencies in currencies other than Yen | |
| Applying for a Foreign currency time deposit when making withdrawals from your Foreign currency savings account | |
| Applying for a Currency-linked time deposit (foreign currency start type) (service is only available in Japanese) | |
| Purchase of Investment trusts (Foreign currency-denominated), foreign currency MMFs | |
| Sony Bank WALLET payments | |
| Payments of a credit card with dual currency payment function (service is only available in Japanese) | |
| Payments for FX margin trading | |
| Making Outgoing foreign currency remittances | |
| Withdrawals of Foreign currency fund transfers between Sony Bank accounts | |
| Purchase of Foreign currency security token (service is only available in Japanese) |
Please refer to the following examples when making a withdrawal from your Foreign currency time deposit (service is only available in Japanese).
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Cancelation of Foreign currency time deposit (mid-term or maturity) | Withdrawal amount of the foreign currency x average purchase rate of the withdrawing account |
| Payments of bank's charges (mid-term cancelation of Brazilian Real time deposit, etc.) |
Please refer to the following example when making a withdrawal from your Foreign currency time deposit (service is only available in Japanese).
| Examples of transactions | Book value at the time of transaction |
|---|---|
| Cancelation of Currency-linked time deposit (mid-term or maturity) (foreign currency start type) | Withdrawal amount of the foreign currency x average purchase rate of the withdrawing account |
About calculation examples
Example: Foreign currency savings account transactions
| Transaction Date | Transaction Details | Transaction Amount (Foreign currency) |
Balance (Foreign currency) |
Applied rate (Yen) |
Yen-equivalent transaction amount |
|---|---|---|---|---|---|
| Jan. 15 | Buying Foreign Currency | 5,000 | 5,000 | 98.00 | 490,000 |
| Mar. 1 | Buying Foreign Currency | 2,000 | 7,000 | 100.00 | 200,000 |
| May. 20 | Selliing Foreign Currency | 3,000 | 4,000 | 102.00 | 306,000 |
Calculation example of the transaction on March 1 (Buying foreign currency)
Total book value: 490,000 JPY + 200,000 JPY = 690,000 JPY
Average purchase rate: 690,000 JPY / 7,000 USD = 98.58 JPY (rounded up to the second decimal point)
Calculation example of the transaction on May 20 (Selling foreign currency)
Total book value: 690,000 JPY - (3,000 USD x 98.58 JPY) = 394,260 JPY
Foreign exchange profit/loss (3,000 USD x 102.00) - (3,000 USD x 98.58 JPY) = 10,260 JPY
Note: The Average purchase rate is not calculated when selling foreign currencies.