Example C illustrates the Daily Life-to-Date Calculation, the first Eagle Accounting processing principle.
In this example, you purchase a security in entity TaxDemo2 with a Trade Date and Settle Date on 20140401; Par is 1,000,000.00, the Price is 99.00, and has been accrued to 20140406. A New Amortization Rule becomes effective, and the Amortization Method changes from Constant Yield 2 to Level Yield 2, retrospectively.
The following tables describe the security and the entity used for this example.
Security Master Information Option | Value |
|---|---|
Issue Name | FI Issue Tax Type Change |
Description | FI Issue Tax Type Demo |
Ticker | FIITTD |
Primary Asset ID | 555555555 |
Processing Security Type | DBIBFD |
Issue Date | 20091015 |
Dated Date | 20091015 |
First Coupon Date | 20100415 |
Last Coupon Date | 20180415 |
Maturity Date | 20181015 |
Coupon Type Code | Fixed |
Coupon Rate | 5.00 |
Day Count Basis | 30/360 |
Issue Country | United States |
Payment Frequency | Monthly |
Issue Tax Type | Standard |
Primary Exchange | Boston |
Entity Information Option | Value |
|---|---|
Entity ID | TAXDEMO2 |
Portfolio Country | United States |
Accrue Tax Indicator | Yes |
Entity Tax Type | MF (Mutual Fund) |
Entity Tax Qualifier | Level 1 |
Results
Eagle Accounting recalculates the amortization yield and retrospectively calculates where the amortization should be, life-to-date, based on the new Amortization Method. The result is an amortization delta change on 20140407, to bring Eagle Accounting in line based on the life-to-date amortization.
The resulting Income Archive appears in the following table.
Amort Method | Trade Date | Amortization Yield | Accounting Date | Earn Thru Date | Amortization Delta | Amort Life-to-Date |
|---|---|---|---|---|---|---|
CY2 | Apr 01 2014 | 6.255626259859 | Apr 01 2014 | Apr 01 2014 | 7.67 | 7.67 |
CY2 | Apr 02 2014 | 6.255626259859 | Apr 02 2014 | Apr 02 2014 | 7.67 | 15.34 |
CY2 | Apr 03 2014 | 6.255626259859 | Apr 03 2014 | Apr 03 2014 | 7.67 | 23.01 |
CY2 | Apr 04 2014 | 6.255626259859 | Apr 04 2014 | Apr 04 2014 | 7.67 | 30.68 |
CY2 | Apr 05 2014 | 6.255626259859 | Apr 05 2014 | Apr 05 2014 | 7.67 | 38.35 |
CY2 | Apr 06 2014 | 6.255626259859 | Apr 06 2014 | Apr 06 2014 | 7.67 | 46.02 |
LY2 | Apr 07 2014 | 6.256489374660 | Apr 07 2014 | Apr 07 2014 | -8.93 | 37.09 |
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