Assign the Accounting Method to an Equity Method Position

In the Assign Method panel, you can change the accounting method used with a position in an accounting basis where you use the equity method of accounting. It allows you to convert from one accounting method to another. You can identify a position for a common stock or Joint Venture/Limited Liability/Partnership security and assign it to an accounting method of Equity Method (EMA) for the equity method of accounting, or to core STAR accounting.

This page 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 assign the accounting method to a position:

In Accounting Center, in the left navigation pane, click Transactions > Equity Method > Assign Method.
You see the Assign Method panel.
Under Entity Information, select the entity and accounting basis associated with the equity method of accounting where you are changing the assignment.
You must select an accounting basis with an Equity Method Treatment of Other or STAT assigned.
Under Issue Information, enter the effective date and accounting date on which the assignment becomes effective, and select the security.
In the New Accounting Method field, select the accounting method you are assigning.
Complete the options on the Assign Method panel.
Click Submit.
The system submits an EMAADJUST event and adds an open adjustment lot to the entity for all bases updated. No rollback of transactions occurs when you convert from one accounting treatment to another. No accounting entries are created during the conversion process.

After the assignment, the position is ready for processing using the newly assigned EMA/STAR accounting method selected going forward. You can use the Equity Method transactions to maintain EMA positions.

Assign Method Panel Options

The following are the key options in the Assign Method panel. Note options may vary according to your selections.

Option	Tag	Description

Option	Tag	Description
Entity Information
Entity ID	1163	Specifies the unique identifier of the entity.
Entity Name	1164	Specifies the name of the entity.
Base Currency	86	Displays the base currency of the entity.
Accounting Basis	21	Specifies the accounting basis for the entity. You see the primary accounting basis for the entity by default. You can select a secondary basis from the lookup.
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: STAT Treatment. Indicates that you are using the equity method of accounting with a STAT accounting basis for use with statutory insurance. If you are creating or editing a STAT basis that uses the equity method, you must choose STAT Treatment. You can apply the STAT Treatment to any basis other than a GAAP basis. Other Treatment. Indicates that you are using the equity method of accounting with a non-STAT accounting basis, such as a GAAP basis that uses Generally Accepted Accounting Principles (GAAP). You can apply the Other Treatment to any basis other than a STAT basis.
Issue Information
Trade Date	35	Specifies the effective date of the assignment.
Accounting Date	36	Specifies the date the assignment 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.
L/S 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.
Cross Reference ID	1233	Specifies the cross reference identifier associated with the security.
Issue Name	961	Specifies the name of the security. The lookup allows you to select a security held for the selected entity. 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.
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.
Issue Currency	85	Displays the local currency of the security.
Event Information
Current Accounting Method	16126	Displays the current accounting method for the selected basis/security on the specified accounting date and effective date. For example, you see EMA for Equity Method or STAR for core STAR accounting method.
New Accounting Method	7001	Specifies the new accounting method you are choosing for a position with an EMA Treatment of STAT. Options include: Equity Method Conversion Core STAR Conversion
New Accounting Method	7002	Specifies the new accounting method you are choosing for a position with an EMA Treatment of Other. Options include: Equity Method Conversion Core STAR Conversion
Reason	56	Displays the event associated with the new accounting method assigned. For example, EMACONV or STARCONV.