How to record treasury lock settlement-gain
Recording the cash settlement gain upon the expiration of a treasury lock used to hedge interest rates.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 15,000.00 | - |
| Gain on Treasury Lock Settlement | Revenue | - | 15,000.00 |
💡 Accountant's Note
A treasury lock is settled in cash based on the difference between the locked rate and the market rate at the time of debt issuance.
Practitioner & Systems Framework
💻 ERP Architecture
Record as a non-operating gain; may require amortization if designated as a hedge.
⚠️ Audit Flags
Settlement amounts not matching the debt issuance timeline.
📄 Required Documentation
Treasury lock contract and settlement calculation sheet.
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