Access the Adjust Equity Method Income Panel
To manually adjust income for a position that uses the equity method of accounting:
- In Accounting Center, in the left navigation pane, click Transactions > Equity Method > Adjust Equity Method Income.
You see the Adjust Equity Method Income panel. - 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. - Under Security Information, select the security.
You must select a position with the EMA Cost Flag field set to EMA. - Under Accounting Information, enter the effective date and accounting date for the adjustment.
- 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. - 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:
- From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position.
- 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. - Specify the adjustment amount in the Unrealized Market Loss Local box or the Unrealized Market Gain Local box.
- Complete the remaining options in the panel as needed.
- 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:
- From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position.
- 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. - Specify the adjustment amount in the Unrealized FX Loss Base box or the Unrealized FX Loss Base box.
- If the base and issue currency differ, you can edit the Local to Base FX Rate box value to change the corresponding base value.
- Complete the remaining options in the panel as needed.
- 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:
- From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position.
- 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. - 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. - 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. - Complete the remaining options in the panel as needed.
- 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:
- From the Adjust Equity Method Income panel, enter the entity, security, and accounting information for the equity method position.
- 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. - Specify the Market Value Base box value to use for the adjustment transaction.
- Complete the remaining options in the panel as needed.
- 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.
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.
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.
Displays the current identified cost basis in local currency.
Specifies the current amount of investment market loss on an EMA security in local currency for the selected basis.
Specifies the current amount of investment market gain on an EMA security in local currency for the selected basis.
Displays the current amount of investment market loss on an EMA security in base currency for the selected basis.
Displays the current amount of investment market gain on an EMA security in base currency for the selected basis.
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.
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.
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.
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.
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
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.
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.
Displays the amount of undistributed investment loss on an EMA security in base currency for the selected basis.
Displays the amount of undistributed investment income on an EMA security in base currency for the selected basis.
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.
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