WRITERS NOTE: This topic is as of 2015.
ejected from Fixed Income guide Impairments chapter per SteveB 3/2017.
New home can be Acct Opps near other cost adjustment procedure. determine how to differentiate them. Xref to FIG for panel detail. BT 73949?. Should we explain the difference between a cost adjustment and an impairment? Should we explain the difference between the Cost Basis Adjustment panel vs Impairment panel with Cost Adjustment? Ray thinks it’s regulatory focus for IFRS (Impairment panel) vs. cost accounting focus (Cost Basis Adjustment panel)
ejected from Fixed Income guide Impairments chapter per SteveB 3/2017.
New home can be Acct Opps near other cost adjustment procedure. determine how to differentiate them. Xref to FIG for panel detail. BT 73949?. Should we explain the difference between a cost adjustment and an impairment? Should we explain the difference between the Cost Basis Adjustment panel vs Impairment panel with Cost Adjustment? Ray thinks it’s regulatory focus for IFRS (Impairment panel) vs. cost accounting focus (Cost Basis Adjustment panel)
In the Impairments panel, you can adjust the booked cost for a specific lot. You can increase or decrease the cost basis based on an adjustment amount.
You can also use the Cost Basis Adjustment panel to execute a cost adjustment. While the Impairments panel only adjusts amortized cost, the Cost Basis Adjustment panel can adjust all cost fields, However, the Cost Basis Adjustment panel does not provide support for entities that follow International Financial Regulatory Standards (IFRS).
To process a cost adjustment:
- 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.
You see the Impairments panel. - Click the Impairment Processing Flag field and select a value of Lot.
- In the Entity Information section, specify an entity and accounting basis.
- Click the Impair by Option field and select a value of Amount.
- Click the Event Type field and select a value of Cost Adjustment.
- Click the Writeup/Writedown Switch field, and indicate whether the cost adjustment increases or descrease the cost basis.
Options include:
- Increase Basis/Writeup
- Decrease Basis/Writedown - Complete the remaining options on the Impairments panel.
You must indicate if the lot is long/short, identify the security and open lot, and enter the Local Cost Adjustment amount. For more information about the panel, see the impairments section in the Fixed Income Processing User Guide. - Click Submit.
After you make a cost adjustment, you can view the cost adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool.
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