How to record money market fund NAV loss
Recording a decrease in the net asset value (NAV) of a floating NAV money market fund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unrealized Loss on Short-term Investments | Expense | 500.00 | - |
| Money Market Fund Investment | Asset | - | 500.00 |
💡 Accountant's Note
For floating NAV funds, any decrease in the market value of the fund's holdings must be recognized as an unrealized loss.
Practitioner & Systems Framework
💻 ERP Architecture
Update the security price in the investment module to trigger the valuation entry.
⚠️ Audit Flags
Failure to reconcile fund shares to the latest market price per share.
📄 Required Documentation
Monthly fund statement showing NAV per share and total market value.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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