Fund Administration Management is a fund administration company providing Fund Administration and Transfer Agency services for a number of large global clients in the funds sector. Its head offices are based in Dublin but it outsources some its anchor activities to three main locations: Gdansk, Bangalore & Manila. You work as an associate in the Learning & Development team based in Gdansk; your primary role is to train new hires on the various aspects of their Fund Administration role. The new hires will be preparing and reviewing Fund accounting in a busy Fund Administration environment. You have previous industry experience having worked in several roles in fund administration which include preparing Net Asset Values $($NAVs$)$ for funds alongside some experience in the transfer agency department. For training purposes, you have developed a fictitious training fund and prospectus which allows new hires to practice their understanding of some core accounting entries before progressing to administering funds in the live environment. The fictitious prospectus ofthe company and key details of the training fund on Tuesday $20$th of February $2024$ are as follows: $$ Net Asset Value at the start of the day on the $20$th of February is $10,400,327($broken out across accounting category below$)$ and the shares$/$units in issue are $1,000,000.$ The NAV Per Share is therefore $10\mathrm{.}40$ per share. $$ Base currency of the Fund is Euro, it$$s a single class fund $$ Fund is priced close of business $$ uses close of business $($COB$)$ exchange rates.

$$ The companyholdsadiversifiedportfolio of securities including equities and derivatives. $$ Expenses, the following expenses will need to be setup and accrued for: o Investment Management fees $1\mathrm{.}5\%$ of previous Total Net Assets o FundAdministration fees of $0\mathrm{.}3\%$ per annum of previous TotalNet Assets o Fixed Audit Fees of $11,500$ perannum o Fixed Legal Fees of $20,000$ perannum

Accounting Equation $=$ Assets $$ Liabilities $=$ Capital $(+$Income $$ Expenses$)$ Using the template provided in IOB learn, prepare a brief PowerPoint presentation $($PPT$)$ which draws on the information provided for FAM. In your presentation, show how you would record the below accounting entries for the $20$th of February including the impact these entries would have on the accounting equation outlined above. Your presentation should use graphics to enhance and support your understanding of the impact these transactions would have on the accounting equation. Ensure you include all workings and journals which should be presented as per the manual. The opening position and accounting equation on the $20$th of February is: $12,400,827\mathrm{.}00($Assets$)2,000,500($Liabilities$)=10,285,327($Capital$)+230,000($Income$)(115,000)($Expenses$)$

Assets less Liabilities $=$ Capital $(+$Income $$ Expenses$)$

Assets $12,400,827\mathrm{.}00$ Capital $10,285,327$

Liabilities $2,000,500$ Income $230,000$

Expenses $115,000$

Total

No of Shares $10,400,327$

$1,000,000$ Total $10,400,327$

NAV per Share $($rounded to $2$dp$)10\mathrm{.}40$

Prepare five slides showing the following entries:

$1$ The training fund receives redemption orders of $5,000$ shares, The settlement date is February $22$nd$.$ Show workings, journal for $20$th February and impact on the accounting equation. $2$ Calculation of Fund Administration Expenses for the $20$th of February based on the prior day Total Net Assets. Show workings, journal and impact on the accounting equation

$3$ Calculate both Fixed expense entries for the $20$th of February. Show workings, journal and impact on the accounting equation.

$4$ Dividend income of $8,000$ euros was received into the fundon the $20$th of February with a payment day of the $11$ th of March. Show workings, journal and impact on the accounting equation.

$5$The fund purchased the below First Call Options contracts. Show workings, journal and impact on the accounting equation.

Type Buy

Security First Call Options

Contract Size $100$

Number of Contracts $50$

Premium $3\mathrm{.}75$ Euro per share

Commission $40$ Euro in total

Trade Date $20$th of February

Settlement Date $23$rd of February

Options Terms: To acquire $5,000$ MSFT ordinary shares at an exercise price of $87\mathrm{.}50$ per share.

Exercise Date: $16$th of March

Note: Each slide should build on the previous e$.$g$.$ slide one will show the opening position for the accounting equation plus the slide $1$ journal entry. Slide two will build on this and show the new accounting entry and then include day $2$ journal entry and so on through the slides.

PART B $$ Foreign Equity Purchase & subsequent Sale Using the data presented below,

prepare the accounting entries and workings for each date as it would appear in the base currency of the Fund. Clearly show your workings for each accounting entry $.$

$$ February $28$th$-$ Purchase of $8,400$ Kingfisher Equity shares at a mid$-$day market price of $3\mathrm{.}20$ The trade will settle on the $1$st of March. The close of business market price is $3\mathrm{.}25$ Exchange rate is $1$ Euro $=0\mathrm{.}89$ GBP$.$

$$