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In the Adjust Equity Method Income panel, you can manually process an  income adjustment for a position that uses the equity method of accounting. You can record an income adjustment for undistributed or unrealized investment income, based on regulatory requirements, and can also record unrealized market and currency gains/losses. If you believe that book value does not equal market value, you can override the market value. You can use this ability to override market value for statutory reporting or for use in the Portfolio Valuation report. 

The Adjust Equity Method Income panel differs from the panels that you use to process income adjustments in core STAR accounting The Adjust Equity Method Income panel processes each accounting basis individually. You can use this panel with positions only to adjust the accounting basis that has an EMA accounting method. 


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Access the Adjust Equity Method Income Panel

To manually adjust income 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 Income.
    You see the Adjust Equity Method Income panel.
  2. Under Entity Information, select the entity and accounting basis that you are adjusting. 
    You must select an entity with at least one accounting basis with an EMA Treatment of Other or STAT assigned.
  3. Under Security Information, select the security.
    You must select a position with the EMA Cost Flag field set to EMA. 
  4. Under Accounting Information, enter the effective date and accounting date for the adjustment.
  5. Complete the remaining options on the panel.
    There are separate areas of the panel where you can enter adjustment amounts for unrealized market gain/loss, unrealized currency gain/loss, and undistributed income/loss, and where you can override the position-level market value. 
  6. Click Submit.
    The system submits an EMAADJUST event. It processes the income adjustment on a pro-rata basis to all open lots.

Adjust Unrealized Market Gain/Loss

To adjust unrealized market gain/loss for an equity method position:

  1. From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position. 
  2. Under Unrealized Market Gain/Loss, click the Unrealized Market Type box and select Unrealized Gain or Unrealized Loss. 
    You can view the current balances for the position.
  3. Specify the adjustment amount in the Unrealized Market Loss Local box or the Unrealized Market Gain Local box. 
  4. Complete the remaining options in the panel as needed.
  5. Click Submit.

Adjust Unrealized Currency Gain/Loss

You can adjust unrealized current gain/loss for a position that has an EMA Treatment of STAT, and an EMA Cost Flag of EMA,

To adjust unrealized currency gain/loss for an equity method position: 

  1. From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position. 
  2. Under Unrealized Currency Gain/Loss, click the Unrealized FX Capital Type box and select Unrealized Gain or Unrealized Loss. 
    You can view the current balance for the position.
  3. Specify the adjustment amount in the Unrealized FX Loss Base box or the Unrealized FX Loss Base box. 
  4. If the base and issue currency differ, you can edit the Local to Base FX Rate box value to change the corresponding base value. 
  5. Complete the remaining options in the panel as needed.
  6. Click Submit.

Adjust Undistributed Income/Loss

For positions with an EMA Treatment of STAT, you can adjust unrealized undistributed income/loss. For positions with an EMA Treatment of Other, you can adjust undistributed investment income/loss.

To adjust undistributed income/loss for an equity method position: 

  1. From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position. 
  2. Under Undistributed Income/Loss, click the Investment Income/Loss Type box and select Income or Loss. 
    The fields that apply to the income/loss type and the position's EMA treatment become available. You can view the current balances for the position.
  3. For a position with an EMA Treatment of STAT, do one of the following: 
    - Specify the adjustment amount in the Unrealized Undistributed Income Local box or the Unrealized Undistributed Loss Local box. 
    - If the base and issue currency differ, you can edit the Blended Income FX Rate box value to change the corresponding base value. 
  4. For a position with an EMA Treatment of Other, do one of the following:
    - Specify the adjustment amount in the Undistributed Investment Income Local box or the Undistributed Investment Loss Local box. 
    - If the base and issue currency differ, you can edit the Blended Income FX Rate  box value to change the corresponding base value. 
  5. Complete the remaining options in the panel as needed.
  6. Click Submit.

Adjust the Position-Level Market Value

In the Adjust Equity Method Income panel, you can manually override the market value that Eagle Accounting calculates for market value in core accounting reports for a position that uses the equity method of accounting. The system uses the position-level market value you provide and backs it into the unrealized gain/loss amount. 

To adjust the position-level market value for an equity method position:

  1. From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position. 
  2. Under Manual Market Value, specify the Market Value Local box value to use for the adjustment transaction.. 
    You can view the current market value for the position.
  3. Specify the Market Value Base box value to use for the adjustment transaction.
  4. Complete the remaining options in the panel as needed.
  5. Click Submit.

Adjust Equity Method Income Panel Options

The following are the key options in the Adjust Equity Method Income panel. Note options may vary according to your selections.

OptionTagDescriptionEntity InformationEntity ID1163Specifies the unique identifier of the entity.Entity Name1164Specifies the name of the entity.Base Currency86Displays the base currency of the entity.Accounting Basis21Specifies the accounting basis for the entity. You see the primary accounting basis for the entity by default. You can select a secondary basis from the lookup.EMA Treatment16084

Displays the Equity Method Treatment field value for the selected accounting basis, which identifies the treatment of assets held under the equity method of accounting. Options include STAT Treatment and Other Treatment.

Transaction Notes56Displays the reason for the adjustment event. For example, EMAINC.Security InformationLong/Short Indicator15Displays an L (long) or S (short) to indicate whether the position is long or short.Cross Reference Type1234Specifies the cross reference type associated with the security.Cross Reference ID1233Specifies the cross reference identifier associated with the security.Issue Name961Specifies the name of the security. You can choose a security with a processing security type of Common Stock (EQCSCS) or Joint Venture/Limited Liability/Partnership (JVLCLP). Ticker13Specifies the trade ticker of the security.EMA Cost Flag16092Displays the accounting method for the accounting basis/security. Values include EMA or STAR. Instrument Type11Displays the instrument type. A security with a processing security type of Common Stock (EQCSCS) has an Instrument Type of Equity (EQ). A security with a Joint Venture/Limited Liability/Partnership (JVLCLP) processing security type has an Investment Type of Equity/Cost Method (EC),Security Type82Displays the security type of the asset.Issue Currency85Displays the local currency of the security.Accounting InformationAcquisition Date216Displays the date that the position was originally acquired. Effective Date35Specifies the effective date of the transaction. The trade date cannot be greater than the post date, accounting date, or settlement date.Accounting Date36Specifies the date the transaction is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.Monthly Accounting Date4733Displays the month end accounting date.Settlement Date37Specifies the date the transaction is settled.Position Quantity122Displays the current quantity of the position.Quantity Type12

Displays the quantity generally accepted as a standard for exchange for the security. When you select a security with a processing security type for Common Stock (EQCSCS), this field displays Shares. When you select a security with a processing security type of JVLCLP (Joint Venture/Limited Liability/Partnership), values can include Shares, Units, or Percentage.

Local Unit Cost124Displays the average unit cost of the position in local currency.Base Unit Cost125Displays the average unit cost of the position in base currency.Local Current Cost128

Displays the current identified cost basis in local currency.

Base Current Cost129Displays the current identified cost basis in base currency.Unrealized Market Gain/LossCurrent Unrealized Market Loss Local16114

Specifies the current amount of investment market loss on an EMA security in local currency for the selected basis. 

Current Unrealized Market Gain Local16115

Specifies the current amount of investment market gain on an EMA security in local currency for the selected basis.

Current Unrealized Market Loss Base16116

Displays the current amount of investment market loss on an EMA security in base currency for the selected basis. 

Current Unrealized Market Gain Base16117

Displays the current amount of investment market gain on an EMA security in base currency for the selected basis. 

Unrealized Market Type7001

Indicates whether the income adjustment applies to unrealized market gain or loss. Options include:

  • Unrealized Gain. The Unrealized FX Gain Base field becomes available. 
  • Unrealized Loss. The Unrealized FX Loss Base field becomes available.
Unrealized Market Loss Local16104Specifies the adjustment amount of investment market loss on an EMA security in local currency for the selected basis. This field appears if you set the Unrealized Market Type field to Unrealized Loss.Unrealized Market Gain Local16105Specifies the adjustment amount of investment market gain on an EMA security in local currency for the selected basis. This field appears if you set the Unrealized Market Type field to Unrealized Gain.Local to Base FX Rate87Specifies the asset currency to portfolio base currency exchange rate. This value is expressed as units of asset currency to one unit of portfolio base currency. This field is available when the base currency and issue currency differ.Unrealized Market Loss Base16106Displays the adjustment amount of investment market loss on an EMA security in base currency for the selected basis. This field appears if you set the Unrealized Market Type field to Unrealized Loss.Unrealized Market Gain Base16107Displays the adjustment amount of investment market gain on an EMA security in base currency for the selected basis. This field appears if you set the Unrealized Market Type field to Unrealized Gain.Unrealized Currency Gain/LossCurrent Unrealized FX Loss Base16118

Displays the current amount of currency loss on an EMA security in base currency for the selected basis. This field appears if the position's EMA Treatment is STAT, its EMA Cost Flag is EMA, and the base currency differs from the issue currency. 

Current Unrealized FX Gain Base16119

Displays the current amount of currency gain on an EMA security in base currency for the selected basis. This field appears if the base currency differs from the issue currency. This field appears if the position's EMA Treatment is STAT, its EMA Cost Flag is EMA, and the base currency differs from the issue currency. 

Unrealized FX Capital Type7002 

Indicates whether the income adjustment applies to unrealized currency gain or loss. This field appears if the position's EMA Treatment is STAT, its EMA Cost Flag is EMA, and the base currency differs from the issue currency. Options include:

  • Unrealized Gain. The Unrealized FX Gain Base field becomes available. 
  • Unrealized Loss. The Unrealized FX Loss Base field becomes available. 
Unrealized FX Loss Base16108Specifies the unrealized FX loss adjustment amount in base currency. This field appears if you set the Unrealized FX Capital Type field to a value of Unrealized Loss. Unrealized FX Gain Base16109Specifies the unrealized FX gain adjustment amount in base currency. This field appears if  you set the Unrealized FX Capital Type field to a value of Unrealized Gain. Undistributed Income/LossInvestment Income/Loss Type7004

Indicates whether the income adjustment applies to undistributed income or loss. For positions with an EMA Treatment of STAT, you can adjust unrealized undistributed income/loss. For positions with an EMA Treatment of Other, you can adjust undistributed investment income/loss. When you select a value, the options associated with the position's EMA Treatment and an income or loss type adjustment become available. Options include:

  • Income
  • Loss
Current Unrealized Undistributed Income L7350Displays the current unealized undistributed income amount on an EMA security in local currency for the selected basis. This field appears if you select a position with an EMA Treatment set to STAT. Current Undistributed Investment Income L7351Displays the current undistributed investment income amount on an EMA security in local currency for the selected basis. This field appears if you select a position with an EMA Treatment set to Other. Current Unrealized Undistributed Income B7430Displays the current unealized undistributed income amount on an EMA security in base currency for the selected basis. This field appears if you select a position with an EMA Treatment set to STAT. Current Undistributed Investment Income B7431

Displays the current undistributed investment income amount on an EMA security in base currency for the selected basis. This field appears if you select a position with an EMA Treatment set to Other. 

Undistributed Investment Loss Local7519Specifies the adjustment amount of undistributed investment loss on an EMA security in local currency for the selected basis. This field appears if you select a position with an EMA Treatment set to Other and set the Investment Income/Loss Type to Loss.  Undistributed Investment Income Local7512

Specifies the adjustment amount of undistributed investment income on an EMA security in local currency for the selected basis. This field appears if you select a position with an EMA Treatment set to Other and set the Investment Income/Loss Type to Income. 

Unrealized Undistributed Income Local7513Specifies the adjustment amount of unrealized undistributed income on an EMA security in local currency for theL selected basis. This field appears if you select a position with an EMA Treatment set to STAT and set the Investment Income/Loss Type to Income.  Unrealized Undistributed Loss Local7414Specifies the adjustment amount of unrealized undistributed loss on an EMA security in local currency for the selected basis. This field appears if you select a position with an EMA Treatment set to STAT and set the Investment Income/Loss Type to Loss.  Blended Income FX Rate484Specifies  the FX rate used to calculate the base market value. This field appears if the base currency differs from the issue currency.Undistributed Investment Loss Base7515

Displays the amount of undistributed investment loss on an EMA security in base currency for the selected basis. 

Undistributed Investment Income Base7516

Displays the amount of undistributed investment income on an EMA security in base currency for the selected basis. 

Unrealized Undistributed Income Base7517Displays the adjustment amount of unrealized undistributed income on an EMA security in base currency for the selected basis. This field appears if you select a position with an EMA Treatment set to STAT.  Unrealized Undistributed Loss Base7518Displays the adjustment amount of unrealized undistributed loss on an EMA security in base currency for the selected basis. This field appears if you select a position with an EMA Treatment set to STAT.  Manual Market ValueCurrent Market Value Local16141Displays the current position-level market value for the EMA security in local currency for the selected basis. Current Market Value Base16142Displays the current position-level market value for an EMA security in base currency for the selected basis. Market Value Local16139

Specifies the adjustment amount for position-level market value in local currency. The system uses this value to override the market value that Eagle Accounting calculates for market value in core accounting reports. Instead, the system uses this market value for the position and backs it into the unrealized gain/loss amount. If you enter a null value, the system calculates the Market Value based on Amortized Cost and Unrealized G/L. If you enter a value of $0, the system defines Market Value as $0 on reports.

Market Value Base16140Specifies the adjustment amount for position-level market value in base currency. The system uses this value to override the market value that Eagle Accounting calculates for market value in core accounting reports. Instead, the system uses this market value for the position and backs it into the unrealized gain/loss amount. If you enter a null value, the system calculates the Market Value based on Amortized Cost and Unrealized G/L. If you enter a value of $0, the system defines Market Value as $0 on reports
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