In the Buy Shares Equity Method panel, you can manually acquire a security when one or more accounting bases hold that security using the equity method of accounting. You can use this acquisitions type panel to buy shares for a position for a common stock or Joint Venture/Limited Liability/Partnership security for all accounting bases set up for the entity in Eagle Accounting. The panel allows you to specify a commitment, the cost for local/base amounts, and FX rates. You can indicate the encumbrance at the lot level and specify the ownership percentage, for use with STAT reporting. You can also view any share outstanding for the security,
The Buy Shares Equity Method panel differs from the Open Equity Mutual/Fund panel that you can access in the Book Trade tool. If any accounting basis for a position uses the equity method of accounting, you must use the Buy Shares Equity Method panel to book an Open transaction for all accounting bases in effect for the position.
This article assumes you are familiar with the entity and security level elections that have been made for processing a common stock or Joint Venture/Limited Liability/Partnership security when you use the equity method of accounting.
To manually buy shares for a security that uses the equity method of accounting:
- In Accounting Center, in the left navigation pane, click Transactions > Equity Method > Buy Shares Equity Method.
You see the Buy Shares Equity Method panel. - Under Entity Information, select the entity and accounting basis associated with the equity method of accounting.
You must select an entity with at least one accounting basis with an EMA Treatment of Other or STAT assigned. - Under Issue Information, enter the effective date and accounting date on which the transaction becomes effective, and select the security.
- Complete the remaining options on the panel.
Different fields become available based on whether the basis uses the STAT or Other accounting treatment. and if the position uses the Equity Method (EMA). - Click Submit.
The system submits an EMAOPEN event. Once the system processes a transaction for a STAR basis, it follows all core accounting processes. Once the system processes a transaction for an EMA basis, it follows accounting processes for the equity method of accounting. It also creates a cash disbursement record.
Buy Shares Equity Method Panel Options
The following are the key options in the Buy Shares Equity Method panel. Note options may vary according to your selections.
| Option | Tag | Description |
|---|---|---|
| Entity Information | ||
| Entity ID | 1163 | Specifies the unique identifier of the entity. |
| Entity Name | 1164 | Specifies the name of the entity. |
| EMA Treatment | 16084 | Displays the Equity Method Treatment field value for the selected accounting basis, which identifies the treatment of assets held under the equity method of accounting. Options include:
|
| Base Currency | 86 | Displays the base currency of the entity. |
| Issue Information | ||
| Trade Date | 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 | 36 | Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date. |
| Monthly Accounting Date | 4733 | Displays the month end accounting date. |
| Settlement Date | 37 | Specifies the date the trade is settled. |
| Event Type | 55 | Displays the business intent of the transaction. For example, EMAOPEN. |
| Long/Short Indicator | 15 | Displays an L (long) or S (short) to indicate whether the position is long or short. |
| Cross Reference Type | 1234 | Specifies the cross reference type associated with the security. |
Issue Name | 961 | Specifies the name of the security. You can choose a security with a processing security type of Common Stock (EQCSCS) or Joint Venture/Limited Liability/Partnership (JVLCLP). |
| Ticker | 13 | Specifies the trade ticker of the security. |
| Cross Reference ID | 1233 | Specifies the cross reference identifier associated with the security. |
| Instrument Type | 11 | Displays the instrument type. A security with a processing security type of Common Stock (EQCSCS) has an Instrument Type of Equity (EQ). A security with a Joint Venture/Limited Liability/Partnership (JVLCLP) processing security type has an Investment Type of Equity/Cost Method (EC), |
| Security Type | 82 | Displays the security type of the asset. |
| Quantity Type | 12 | Displays the quantity generally accepted as a standard for exchange for the security. When you select a security with a processing security type for Common Stock (EQCSCS), this field displays Shares. When you select a security with a processing security type of JVLCLP (Joint Venture/Limited Liability/Partnership), values can include Shares, Units, or Percentage. |
| Issue Currency | 85 | Displays the local currency of the security. |
| Shares Outstanding | 3244 | Displays the remaining shares in the hands of investors for the security. |
| Accounting Information | ||
| Shares | 40 | Specifies the traded quantity of the security. The value must be greater than zero. This field appears if the Quantity Type field displays a value of SHARES or UNITS. If the security has a quantity type of Shares or Units, you must specify a value. |
| Ownership Percent | 16085 | Specifies the percentage of ownership in a partnership, joint venture, or limited liability company to use for the transaction. If the security has a quantity type of Percentage, you must specify a value greater than 0 and less than 100. If the security has a quantity type of Shares or Units, you can specify a value that the system uses for information only. |
| Price Per Share | 45 | Specifies the trade price per share. The value must be greater than zero. |
| Principal | 165 | Displays the principal amount based on the following formula: (Current Shares * Quantity Scale) * (Price * Price Factor)). This product is rounded to the local currency precision. |
| Implied Commission Indicator | 78 | Indicates if commission is included in the price. Options include No and Yes. |
| Commission | 47 | Specifies the amount of the trade commission. |
| SEC Fee | 48 | Specifies the SEC fee. The system calculates the SEC fee if certain criteria is met. |
| Tax Amount | 46 | Specifies the tax amount on the transaction. |
| Stamp Duty Tax | 51 | Specifies the stamp duty amount on the transaction. |
| Other Fee | 3752 | Specifies any additional fees on the transaction. |
| Local Net Amount | 50 | Displays the net amount of the trade based on the following formula: Principle + Fees. |
| Settlement Currency | 63 | Specifies the currency in which the trade is settled. |
| Settlement Net Amount | 64 | Displays the actual settled amount of the trade. The value must be greater than zero. |
| Local to Base FX Rate | 87 | Displays the foreign exchange rate used to calculate the net base amount. The value must be greater than zero. |
| Base Net Amount | 478 | Displays the base amount of the trade. This amount is calculated based on the following formula: Local Net Amount / Local to Base FX Rate. The value must be greater than zero. |
| Current Commitment | 16087 | Displays the current commitment amount on the position. |
| Commitment | 7664 | Specifies the amount committed by the investor in the partnership, joint venture, or limited liability corporation for this transaction. The system only tracks the commitment for the STAT basis, if one exists. |
| Encumbrance | 16089 | Specifies the value of encumbrances in base currency. While the system stores this amount for all bases, you can report on encumbrances only for the accounting basis where the accounting method is EMA. The system stores the encumbrance at the lot level and does not create ledger entries for the encumbrance amount. |
| Settlement Information | ||
| Auto Settle Trade Indicator | 58 | Indicates whether the system settles the trade, coupon, and miscellaneous income and expenses automatically. If the entity's Auto Settle Indicator field is set to Yes, as specified on the Create/Edit Entity or Create Master Fund panels, the system creates a settlement when the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future. Eagle recommends that you set the Auto Settle Indicator field to No for the entity and trade panels. Options include:
|
| Broker Name | 1236 | Specifies the name of the primary broker. |
| Broker Code | 88 | Specifies the code that represents the broker. |
| Clearing Broker | 1236 | Specifies the name of the clearing broker, if different from the trade broker. |
| Clearing Broker Code | 1237 | Specifies the code for the clearing broker. |
| Custodian Bank Name | 1146 | Specifies the name of the custodian bank responsible for the trade. The field lookup allows you to select the custodians that have bank account relationships defined for the entity or for the composite associated with the entity. When you select a value, the system displays values for the Custody Bank Account Number field, Custody Bank Subaccount field, Cash Account Name field and Cash Account Number field, based on the bank account relationships and cash account relationships that apply to the transaction. |
| Custodian Bank Code | 1240 | Specifies the code of the custodian bank. |
| Custody Bank Account Number | 1660 | Specifies the custodian bank primary account number. The panel displays the value associated with the selected bank account relationship for the custodian. |
| Custody Bank Subaccount | 1661 | Displays the custodian bank subaccount number. When you use cash segregation, the panel displays a value of OTHER as the custodian bank subaccount number for the transaction. |
| Cash Account Name | 11696 | Specifies the name of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account name based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction. |
| Cash Account Number | 116697 | Specifies the account number of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account number based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction. |
| Settlement Instructions 1 | 1897 | Allows you to add settlement notes. |
| Settlement Instructions 2 | 1898 | Allows you to add settlement notes. |
| Settlement Instructions 3 | 1899 | Allows you to add settlement notes. |
| Settlement Instructions 4 | 1900 | Allows you to add settlement notes. |
| Settle Location | 43 | Specifies the location in which the trade is settled. |
| Exchange Name | 2291 | Specifies the marketplace in which the security is traded. It is also used with global tax withholding and tax reclaim processing. |
| Exchange Code | 17 | Specifies the code of the marketplace in which the security is traded. |
| Other Information | ||
| Transaction Notes | 56 | Contains user defined information about the trade. |
| Original Trade Ticket Number | 761 | Contains the trade ticket identification number. The system uses it during processing. For example, IDLOT close or cancel events use this number to locate an open lot. |
| FAS 115 Code | 3728 | Specifies the FAS (Financial Accounting Standards) 115 Code, which is used to report assets. The real cash flow is the same regardless of accounting method. However, financial statements can be very different depending on which method is used. Options include:
|
| Holding Term | 9091 | Specifies the holding term value to assign to lots in the selected position during a lot level conversion. Options include:
|
| Regulatory Intent | 8915 | If you now hold the trade in an entity/accounting basis with the new International Financial Reporting Standards (IFRS) regulatory category of Fair Value Profit Loss (FVPL) but previously held the trade in an entity/accounting basis with the old regulatory category of Fair Value Option (FVO) or Held for Trading (HFT), you can identify the old regulatory category specified for the trade at the entity/accounting basis level. You can specify a value for reporting purposes only. Options include:
|
| User Defined Priority | 2862 | Specifies the user generated number that determines the event sub priority. That is, after the system accounts for the event sequence and corporate action sequence. |
| Order Number | 1092 | Specifies the order number of the transaction. This can be the same for multiple lots. |
0 Comments