The SMF setup used for this example follows.
Long Term Debt Coupon Periods
Coupon
5.000000
Coupon Type Code
Fixed Rate
Day Count Basis
30/360
Payment Frequency
Semiannual
Payment
...
Frequency Code
6_M
Long Term Debt Dates
Issue Price
100.00000000
Issue Date
20020101
Dated Date
20020101
First Coupon Date
20020701
Last Coupon Date
20060701
Maturity Date
20070701
Maturity Price
100.00
In the following figure, the Create Calls/Puts/Refunds panel shows this example of a mandatory Call corporate action.
...
When the system processes the Call, Eagle Accounting creates a close or disposition for the entire position, for every holder of the security in Eagle Accounting, at a Price of 102 USD. Back-dated trades of this security cause the corporate action process to be invoked; Eagle Accounting automatically fires off earnings, and then trues up earnings up to the ex-date of the Call/Put/Pre-Refund.
If you run the corporate action and the date before, you had Par of 1,000,000.00 and an Amortized Cost of 1,025,000.00, and the Redemption Gain Loss Indicator option on the accounting basis is set to:
Gain/Loss, Eagle Accounting treats the 5,000 loss caused by the Call transaction as an actual loss.
Amortize, Eagle Accounting treats the 5,000 loss caused by the Call transaction as Accelerated Amortization, and it appears as close amortization on the Cost object.