Buy Shares with the Equity Method of Accounting

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

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: 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.
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: Yes. The system automatically settles the trade, coupon, and miscellaneous income and expenses. The system retrieves the settle date FX rate if the local currency does not equal base and generates a trade to settle date gain/loss. No. Default. The system does not automatically settle the trade, coupon, and miscellaneous income and expenses. You must schedule the settlement for these transactions using the Run Contract Cash global panel. Or, manually settle the transactions using the Run Multiple Settlements panel. If you use cash segregation based on actual cash settlements, you can schedule settlements using the Run Cash Auto Match panel and create settlements manually using Cash Matching.
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: Trading. Assets are acquired to earn a short term trading profit from market movements. The accounting method is market value. Available for Sale. Assets are not planned to be held until maturity and may be sold. The accounting method is market value. Held to Maturity. Assets are planned to be held until maturity. The accounting method is amortized cost. You cannot select this option for a common stock or open end mutual fund.
Holding Term	9091	Specifies the holding term value to assign to lots in the selected position during a lot level conversion. Options include: Short Term. Identifies a short term holding. Cash Equivalent. Identifies a cash equivalent holding.
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: Fair Value Option. Indicates the trade was previously held in a regulatory category of Fair Value Option, used for instruments managed on a fair value basis. Held for Trading. Indicates the trade was previously held in a regulatory category of Held for Trading, used for instruments held with the intent of selling them.
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.