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Rolling back of income refers to the Earn Through Date or Trade Date of earnings for a position, and not the Accounting Date of a position. Eagle Accounting can roll back earnings to the Trade Date of the earnings, and if that period is closed, Eagle Accounting applies earnings to the current accounting period. |
Example 2: Bond Goes into Default in Previous Coupon Period
You earned past a coupon date and do not receive the income for the security because the issuer is in default. You want to set up a debt default period rule for the prior period, that does not recognize the income for that prior period. You then roll back earnings to the effective date for any date in the previous coupon period, and then roll forward. If you set up the debt default period rule to not recognize income, the system creates no coupon for the coupon period.
Example 3: Bond Goes into Default in First Coupon Period of Ownership
You purchase a bond and the bond goes into default. You set up the debt default period rule with the Default Begin Date field equal to the start of the coupon period and set the Default Type to Both. You then invoke earnings for a date in that coupon period, Eagle Accounting zeroes out the Accruals, and Amortization but not the Traded Interest Purchased. You then must make a decision about how to handle the interest purchased, and based on this decision, perform the appropriate manual transaction.