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With Eagle's Accounting solution, you can adjust the booked cost for a specific lot using the Increase/Decrease Cost Basis Adjustment panel and can view the cost adjustment activity in the Position Viewer tool.

Execute a Cost Adjustment

To
Info

You can also use the Book Impairment Adjustment panel to execute a cost adjustment

:
  • From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
  • Enter Cost Basis Adjustment in the Start Search text box.
    • Click the Cost Basis Adjustment (Accounting Center) link to access the panel

    . While the Book Impairment Adjustment panel only adjusts amortized cost, the Increase/Decrease Cost Adjustment panel can adjust all cost fields, However, the Increase/Decrease Cost Adjustment panel does not provide support for entities that follow International Financial Regulatory Standards (IFRS).

    Execute a Cost Adjustment

    To execute a cost adjustment:

    1. In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Cost Adjustments > Increase/Decrease Cost Adjustment.
      You see the Increase/Decrease Cost

    Basis

    1. Adjustment panel.

    2. Complete the options on the

    Cost Basis Adjustment panel. See the Cost Basis Adjustment Options section

    1. Increase/Decrease Cost Adjustment panel.
      In addition to entering the entity and security identifier, you must enter a value for the following:
      –  Event Type. Determines the business intent of the event. Options include Increase Basis and Decrease Basis.
      –  Choose Open Lot. Specifies the lot for which you are making the cost adjustment.
      –  Current Cost Adjustment Local. Specifies the amount of the adjustment.

    2. Click Submit.

    3. Close the Cost Basis Adjustment bottom tab to return to the Accounting Center.

    See the following example of the Cost Basis Adjustment panel.
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    Cost Basis Adjustment


    Increase/Decrease Cost Adjustment Panel Options

    In the Cost Basis Adjustment panel, you can execute a cost adjustment.

    NoteOptions

    Note that options may vary according to your selections.

    Option

    Tag

    Description

    Entity Information

    The following are the options for entity information:

    Entity ID

    (tag 1163). Specifies

    1163

    Specifies the unique identifier of the entity.

    Entity Name

     (tag 1164). Specifies

    1164

    Specifies the abbreviated name of the entity.

    Base Currency

    (tag 86). Displays

    86

    Displays the base currency of the entity.

    Accounting Basis

    (tag 21). Specifies

    21

    Specifies the accounting basis.

    Security Information

    The following are the options for security information:

    End Date

    (tag 221). Specifies

    221

    Specifies the end of period date.

    Event Type

    (tag 55). Specifies

    55

    Specifies the type of event. Available options include Increases Basis and Decreases Basis.

    Long/Short Indicator

    (tag 15). Indicates

    15

    Indicates whether the position is long or short. Available options include Long and Short.

    Issue Name

     (tag 961). Specifies

    961

    Specifies the name of the security.

    Ticker

     (tag 13). Specifies

    13

    Specifies the symbol used to uniquely identify a security.

    Xref Type

    (tag 1234). Displays

    1234

    Displays the cross reference type associated with the security.

    Xref Security ID

    (tag 1233). Specifies

    1233

    Specifies the cross reference identifier associated with the security.

    Primary Asset ID

     (tag 14). Specifies

    14

    Specifies the identification number of the primary asset ID type for the security.

    Instrument Type

    (tag 11). Displays

    11

    Displays the instrument type, such as cash, equity, or fixed income.

    Security Type

     (tag 82). Displays

    82

    Displays the security type of the asset.

    Issue Currency

    (tag 85). Displays

    85

    Displays the local currency of the security.

    Accounting Information

    The following are the options for accounting information:

    Choose Open

    Lot (tag 962). Displays

    Lot 

    962

    Displays a list of open lots for which you can process a cost adjustment.

    Event Type

    (tag 502). Displays

    502

    Displays the business intent of the transaction.

    Trade Date

     (tag 35). Specifies

    35

    Specifies the effective date of the trade. The trade date cannot be greater than the post date, accounting date, or settlement date.

    Accounting Date

     (tag 36). Specifies

    36

    Specifies the date the trade is reported. The accounting date must be greater than the trade date.

    Monthly Accounting Date

    (tag 4733). Displays

    4733

    Displays the month end accounting date.

    Trade Quantity

    (tag 159). Displays

    159

    Displays the quantity of the open adjustment event.

    Unit Price

    (tag 160). Specifies

    160

    Specifies the price of the security per unit.

    Original Cost Local

    (tag 162). Displays

    162

    Displays the total cost of the executed trade.

    Current Cost Local

     (tag 128). Displays

    128

    Displays the current identified cost basis in local currency.

    Current Cost Adjustment Local

    (tag 50). Specifies

    50

    Specifies the amount of the adjustment.

    Local to Base FX Rate

    (tag 87). Displays

    87

    Displays the local to base foreign exchange rate.

    Current Cost Adjustment Base

    (tag 50). Displays

    50

    Displays the base amount of the trade.

    Target Event ID

    (tag 26). Displays

    26

    Displays the target event ID type.

    Custodian Bank Name

     (tag 1146). Specifies

    1146

    Specifies the name of the custodian bank.

    Custodian Bank

    Code (tag 1240). Specifies

    Code 

    1240

    Specifies the custodian bank code.

    Custody Bank Account Number

     (tag 1660). Specifies

    1660

    Specifies the custodian bank account number.

    Custody Bank Subaccount

    (tag 11852). Specifies

    11852

    Specifies the custodian bank subaccount.

    Other Information

    The following are the options for other information:

    Original Trade Ticket Number

    (tag 761). Specifies

    761

    Specifies the origin of the trade ticket number.

    Transaction Notes

    (tag 56). Specifies

    56

    Specifies the comments about the transaction.

    Reason

    (tag 1828). Indicates

    1828

    Indicates the reason for the cost adjustment.

    Offset Account

    (tag 1825). Specifies

    1825

    Specifies the offset account.

    Recalculate Yield

    (tag 1257). Determines

    1257

    Determines whether to recalculate yield. Options include Yes and No

    .

    View Cost Adjustment Activity in the Position Viewer Tool

    Before the cost adjustment was made, the position had a current cost local value of $20.000.00.

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    Position Viewer - Cost object Open Lots tabImage Added

    With the "increase in basis" adjustment of $555.00, the cost is adjusted to $20.555.00. You can view the cost adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool.

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    Position Viewer - Cost object Open Adjustments tabImage Added