Exempt Edge has recently transitioned its position cost reporting methodology from 'Original Cost' to 'Book Cost' using those terms as defined in NI 31-103. This system alteration impacts the way that 'Average Cost' and 'Position Cost' are reported on the position statements that you can generate for your clients. The basic difference is that 'Book Cost' reporting adjusts for transaction fees paid by the client as well as reinvested distributions, returns of capital and corporate reorganizations, while 'Original Cost' only adjusted for transaction fees paid by the client. For some users, this will make no difference, however others may see 'Average Cost' and 'Position Cost’ change (typically due to returns of capital or reinvested dividends).
'Book Cost' is an important step towards our anticipated development of a tax reporting module for the system, as this more accurately establishes a basis for tracking gains and losses. Nonetheless, we recognize that some users may wish to revert to ‘Original Cost’ methodologies. You are now able to stipulate whether your organization reports on a “Book Cost” or “Original Cost” basis and control how this information is presented in position statements.”