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In the Adjust Equity Method Position panel, you can process an impairment for a single position that uses the equity method of accounting to write off investments based on an amount. You can impair a position for a common stock or Joint Venture/Limited Liability/Partnership security. You must enter a separate impairment transaction for each accounting basis where you want to impair the position. The system books the impairment at the position level and allocates it pro-rata across all lots as of the effective date of the transaction.

The Adjust Equity Method Position panel differs from the Impairments panel that you use to process impairments for positions that do not use the equity method of accounting. If any accounting basis for a position uses the equity method of accounting, you must use the Adjust Equity Method Position panel to process an impairment for the position. 

To process an impairment for a position that uses the equity method of accounting:

1. In Accounting Center, in the left navigation pane, click Transactions > Equity Method > Adjust Equity Method Position.
   You see the Adjust Equity Method Position panel.
2. Under Entity Information, select the entity and accounting basis where you are impairing the position. 
   You must select an entity that has at least one accounting basis with an EMA Treatment of Other or STAT assigned.
3. Under Issue Information, select the security associated with the position you are impairing.
4. Under Accounting Information, enter the effective date, accounting date, and settlement date for the impairment.
5. Under Adjustment Information, click Adjustment Type and select Impairment.
6. Complete the remaining options on the Adjust Equity Method Position panel.
   You must specify the adjustment amount in the Impairment Amount Local field.
7. Click Submit.
   The system books an adjustment with an EMAADJUST event and a reason code of EMAIMPAIR. The transaction has an off-setting account of Realized Loss - Impairment..