This scenario describes income adjustments when you use the Equity Method (EMA) of accounting for income adjustmentsmethod. When you use the equity method of accounting for a position, you can hold positions that use the Equity Method (EMA) of accounting method as well as positions that use the STAR accounting method of accounting.Income Income adjustments are only done for apply to EMA securities.
For these scenarios, the Entity (EMAENT) has two bases:
- STAT (uses the STAT equity method treatment)
- GAAP (use uses the Other equity method treatment)
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Finally, ledger activity posts the delta between prior balance and current balance. Accounts specific to the equity method of accounting appear in yellow.
STAT Treatment
Account | Account | Debit | Credit |
|---|---|---|---|
1011000103 | UNREALIZED APPRECIATION OF UNDISTRIBUTED INCOME | 400.00 | 0.00 |
1011000101 | UNREALIZED APPRECIATION OF INVESTMENTS | 0.00 | 1,000.00 |
1011000102 | UNREALIZED DEPRECIATION OF INVESTMENTS | 0.00 | 300.00 |
3003000331 | NET UNREALIZED GAIN ALLOCATED TO CAPITAL | 1,300.00 | 0.00 |
1011000202 | UNREALIZED CURRENCY DEPRECIATION OF INVESTMENTS | 400.00 | 0.00 |
3003000334 | NET UNREALIZED CURRENCY LOSS ALLOCATED TO CAPITAL | 0.00 | 400.00 |
3003000401 | UNREALIZED INCOME/LOSS | 0.00 | 400.00 |
Other Treatment
Account | Account | Debit | Credit |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS | 400.00 | 0.00 |
1011000101 | UNREALIZED APPRECIATION OF INVESTMENTS | 0.00 | 1000.00 |
1011000102 | UNREALIZED DEPRECIATION OF INVESTMENTS | 0.00 | 300.00 |
3003000331 | NET UNREALIZED GAIN ALLOCATED TO CAPITAL | 1,300.00 | 0.00 |
1011000202 | UNREALIZED CURRENCY DEPRECIATION OF INVESTMENTS | 400.00 | 0.00 |
3003000334 | NET UNREALIZED CURRENCY LOSS ALLOCATED TO CAPITAL | 0.00 | 400.00 |
4001000107 | UNDISTRIBUTED INVESTMENT INCOME | 0.00 | 400.00 |
...