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In this example, you purchase a security in entity TaxDemo2 with a Trade Date and Settle Date on 20140401; Par is 1,000,000.00, the Price is 99.00.and has been accrued to 20140406. A New Amortization Rule becomes effective, and the Amortization Method changes from Constant Yield 2 to Level Yield 2, retrospectively.
The following tables describe the security and the entity used for this example.
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Entity Information Option | Value |
|---|---|
Entity ID | TAXDEMO2 |
Portfolio Country | United States |
Accrue Tax Indicator | Yes |
Entity Tax Type | MF (Mutual Fund) |
Entity Tax Qualifier | Level 1 |
Results
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Eagle Accounting recalculates the amortization yield and retrospectively calculates where the amortization should be, life-to-date, based on the new Amortization Method. The result is an amortization delta change on 20140407, to bring Eagle Accounting in line based on the life-to-date amortization.
The resulting Income Archive appears in the following table.
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