On 1 April 2020, Monte Ltd has shares it intends to sell on 31 August 2020.

To hedge against an adverse movement in share prices, Monte sells eight ‘September 2020 SPI futures contracts’ and pays an initial cash deposit (margin) of $55,000 to a broker. On 1 April 2020, the unit price of the September SPI futures contracts is 1322. Assume broker allows a $500 drop before making a margin call to allow for minor fluctuations in the market.

The shares are sold and the September SPI 200 futures contract closed out on 31 August 2020. Assume the futures contracts qualify as a hedge, the shares are marked to market, and Monte has a 30 June reporting date.

The following 2020 market prices are available:

	1 April	30 June	31 August
Market value of shares	$290,000	$293,120	$278,000
Sept 2020 SPI futures price	1322	1330	1265
Market price of 8 Sept SPI 200 futures contracts ($25 per point)	$264,400 (1322 x8 x $25)	$266,000 (1330 x8 x $25)	$253,000 (1265 x8 x $25)

Required:

Record these events in accordance with the requirements of AASB 9. Show all calculations. No narration is required.