Eagle's accounting solution allows you to apply the impairment at the lot level or at the position level. You can purchase lots at different prices and acquisition dates, and test for impairment based on the current amortized cost and current fair value for each lot. As a result, different lots can have amortized cost greater than or less than fair value.
In addition, when processing at a position level, you can process the impairment for all lots or just for lots where it results in a decrease in amortized cost.
While you can impair a security for a single entity, group of entities, or all entities holding the position, the system lets you process an impairment for a single accounting basis. Because different accounting bases have different treatments for how to identify and account for an impairment, you process the impairment at the basis level.
Eagle's accounting solution recognizes other-than-temporary impairments based on current amortized cost, rather than current cost.
When you book an impairment using the Book Impairment Adjustment panel, you can also enter a maturity price override. Earnings processing recognizes the maturity price override as the amortization price in place of the security reference maturity price. The maturity price override is applied to all held lots. In addition, if you enter a maturity price override, Eagle Accounting ignores all call/put schedules when calculating amortization and future cash flows.