Unexpired basisForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Unexpired basisThis topic has 2 replies, 2 voices, and was last updated 1 year ago by John Moffat.Viewing 3 posts - 1 through 3 (of 3 total)AuthorPosts November 13, 2023 at 1:51 pm #694759 charlie00ParticipantTopics: 4Replies: 27☆Hi, I am struglling to understand the apportionment for unexpired basis. Do you have a formula for the time fraction?I understand that the basis narrows linearlly, but when trying Alecto Co they apportioned the basis as 2/6.$22m in 4 months’ time on 1 May 20X2, expecting full repayment 9 months from now. Choose June futures.My understanding for the numerator is 1 May – 30 Jun = 2 months unexpiredBut why would the denominator be 6?Thanks! November 13, 2023 at 2:03 pm #694760 charlie00ParticipantTopics: 4Replies: 27☆I can see this now; it’s the period from Now to the futures end date November 13, 2023 at 4:16 pm #694775 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆Correct 🙂AuthorPostsViewing 3 posts - 1 through 3 (of 3 total)The topic ‘Unexpired basis’ is closed to new replies.