I want to understand how the Free of Payment(FOP) trades work from accounting point of view. My questions are:

  1. What data we collect while capturing FOP trade?

  2. How it impacts NAV and P&L? e.g. say my current NAV is 100 and P&L is 100 as well, I received 10 stocks on AAPL US as FOP, at the time of receive it's market price was 1000 USD, So just after adding FOP, how NAV and P&L will be affected.

Thanks for any help. I will have follow-up questions as well.

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  • $\begingroup$ Hi @AlexC, Thanks for your response. But I was under impression that DVP will change the NAV and FOP will not change it. Can you please elaborate more on this? Or if you can guide me to correct resource, book or site, it will be very helpful for me. $\endgroup$ – Amit Kumar Jun 26 '19 at 10:40
  • $\begingroup$ Sorry, I don't know enough about mutual fund accounting to answer this question... $\endgroup$ – Alex C Jun 26 '19 at 16:03

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