The fourth principle is that Eagle Accounting meets the needs of users by providing ample flexibility to process and report on earnings of fixed income securities.
Eagle Accounting accomplishes flexibility in processing earnings with the following features and functions:
- Amortization Rules. Eagle Accounting allows you to establish a different amortization rule for each accounting basis of an entity. You can set amortization rules at five different levels, and you can apply them in a hierarchical manner. You can select numerous options at each level of the amortization rule, such as any of eight different amortization methods, Prospective or Retrospective amortization rule changes, Recognizing Calls, Recognizing Puts, Step Bond Bifurcation, and Recognizing OID.
The levels for setting an amortization rule include:
- Accounting Basis (default)
- Processing Security Type
- Amortization Accretion Rule Type
- Security ID Level
- Lot
Eagle Accounting allows you to specify an override lot level amortization rule via the Lot Level Amortization Rule Override panel. - Tax Reclaim Processing. Eagle Accounting gives you the ability to create your own nomenclature and structure for tax withholding and reclaim processing, and allows you to apply tax rates based on a hierarchical approach to applying the tax withholding and reclaim rates. Eagle Accounting also allows you to select from three different tax accounting methods on the entity record.
- Accounting Basis. Eagle Accounting can process and track fixed income on multiple accounting bases (also known as multi-basis or multi book), with a variety of options.
- Entity Record. Eagle Accounting allows you to choose between three different coupon-spreading periods.
- Security Master Record. Eagle Accounting supports 20 different Day Count bases, and numerous Payment Frequencies, including payment frequencies that occur on certain business days of the month, and instruments that pay on a certain occurrence of the month, such as the third Tuesday of the month. Eagle Accounting also allows users to manually create payment frequencies based upon a certain number of days or certain number of months.
Eagle Accounting gives you flexibility in reporting, by tracking the following attributes in the Income Archive on a daily basis, thereby allowing you to query the Income Archive to retrieve data:
- Eagle Accounting tracks, on a daily basis in Eagle Accounting's Income Archive, the following attributes on a daily amount (delta): Month to Date, Period to Date, Year to Date, Life-to-Date: Accruals, Amortization, Tax Withholding, Tax Reclaim, TIPS Income, and IO Income.
- Eagle Accounting tracks, on a daily basis in Eagle Accounting's Income Archive, the following attributes on a period-to-date and daily change (delta): Coupon Spreading amount and Deferred Interest Receivable.
- Eagle Accounting tracks the Accounting Date, Post Date, Month End Date, Trade Date, and Earn Thru Date of the earnings.
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