In the Impairments In the Book Impairment Adjustment panel, you can process an impairment for a single entity to write up or write down investments based on an amount. You can impair a holding based on specific lot or by position. You must enter a separate impairment transaction for each accounting basis where you want to impair the lot or position.
To process an impairment by amount:
- From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
- Enter Impairments in the Start Search text box.
- Click the Impairments (Accounting Center) link to access the panel.
...
In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Cost Adjustments > Book Impairment Adjustment.
You see the Book Impairment Adjustment panel.In the Impairment Type section, click the Impairment Processing Flag field and select a value of Position or Lot.
In the Entity Information section, select a single entity and accounting basis.
In the Security Information section, click the Impair by Option field and select a value of Amount.
Click the Event Type field and select a value of Impairment.
Complete the remaining options on the
...
Book Impairment Adjustment panel.
You must identify the direction of the write-off, indicate if the position/lot is long/short, and identify the security and open lot, as appropriate. You can specify the impairment reason, the adjustment amount in the Local Cost Adjustment, Credit Loss Local Adjustment, and Non-Credit Loss Local Adjustment fields, and can specify the cost offset account
...
.
Click Submit.
The system calculates the impairment amount or credit and non-credit loss, as applicable, for the selected lot or for each open lot held within the selected position, and posts the related accounting entries. The system adjusts the book value/current amortized cost of all relevant open lots held for the selected positions by the calculated impairment that will be required to reduce amortized cost.