You can set the PIK URGL Flag field (tag 3859) at the entity/basis level to indicate whether PIK receivables are eligible for Mark to Market when the coupon is to be paid in bonds.
The following option is available in the Create/Edit Entity panel, the Create Master Fund panel, and the Add a Basis to a Portfolio panel. These panels are available in Portfolio Data Center and in Accounting Center.
| Option | Tag | Description |
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| PIK URGL Flag | 3859 | Indicates whether unrealized gain/loss is posted for a Payment in Kind (PIK) bond interest receivable. Options include: - Yes. In Eagle Accounting, you can specify the price of the payment-in-kind shares as part of a PIK corporate action announcement that posts coupon paid in kind on the ex-date (coupon payment date of the bond) of the corporate action. Thus, the difference between the interest receivable recorded on the books during the coupon period at par and the market price used to record the payment-in-kind shares on payment date are recognized as an increase/decrease to Investment Interest Income on the coupon payment date. This can potentially result in a significant change to NAV on the coupon payment date. If you set this option to Yes, this allows the accounting basis to post daily mark to market entries for interest receivable when a security is set to Payment in additional shares.
- No. The Accounting basis is not able to daily mark to market PIK unrealized.
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