Add a Basis to a Portfolio Panel Options for Entities

Ledger Accounting Books

Entity ID

1163

Specifies the unique identifier of the entity for which you are adding an accounting basis.

Entity Name

1164

Specifies the abbreviated name of the entity for which you are adding an accounting basis.

Core Accounting Fields

Accounting Basis

21

Specifies the accounting basis you are adding for the entity, such as GAAP, IFRS, STAT, USTAX, or CUST.

Controlling Basis

4949

Indicates whether the selected accounting basis is the entity's controlling basis for use with for same lot selection. Same lot selection allows the system to relieve the same lots across multiple bases in order to keep lots in sync across bases. Options include:

• Yes. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) is the entity's controlling basis during same lot selection. The controlling basis is the accounting basis that controls lot selection for closing transactions. An entity can have a single controlling basis. You can designate a primary or a non primary basis as the controlling basis.

• No. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) is a non-controlling basis for the entity during same lot selection. A non-controlling basis attempts to close the same lots that the controlling basis closed. An entity can have one or more non-controlling bases.

• Empty. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) does not participate in same lot selection.

Regulatory Category

12387

Specifies the regulatory category associated with International Financial Reporting Standards (IFRS). A regulatory category is a classification that determines how to account for financial instruments. The new IFRS 9 categories that replace IAS 39 categories include Amortized Cost, Fair Value - Other Comprehensive Income, and Fair Value Profit Loss. IFRS 9 categories classify debt instruments based on their contractual cash flow characteristics and the business model in which they are held. Equity securities are classified in the FVOCI or FVPL regulatory categories. If you set the Accounting Basis field to a value of IFRS, you must specify a regulatory category. If you choose an accounting basis value other than IFRS, use of a regulatory category is optional. All investments within an entity/accounting basis must have the same regulatory category. A multi basis entity can have different regulatory categories by basis. Options include:

• AC (Amortized Cost). Used for debt instruments when the business model in which the financial assets are held has an objective to hold assets to collect contractual cash flows. Contractual cash flows must be solely payments of principal and interest on the principal amount outstanding (P&I).

• AFS (Available for Sale). Used for financial assets that are available for sale.

• AFSC (Available for Sale at Cost). Used for instruments that are valued at cost and are available for sale.

• FVO (Fair Value Option). Used for instruments managed on a fair value basis.

• FVOCI (Fair Value – Other Comprehensive Income). Used for debt instruments when the business model in which the financial assets are held has an objective both to hold assets to collect contractual cash flows and to sell financial assets. Contractual cash flows must be solely payments of principal and interest on the principal amount outstanding (P&I). Used for equity investments only if an entity makes an irrevocable election on initial recognition for the equity investments to be measured at FVOCI without recycling gains and losses to earnings.

• FVPL (Fair Value Profit Loss). Used for all other instruments, including derivatives, those held for trading, and those managed on a fair value basis. Includes debt instruments not qualified for AC or FVOCI regulatory categories. Also includes equities not designated as FVOCI and derivatives plus debt securities that are classified with an FVO election.

• HFT (Held for Trading). Used for instruments held with the intent of selling them.

• HTM (Held to Maturity). Used for non derivative financial assets that you intend to hold to the asset's maturity or payment date and whose cash value is not needed until that date.

• LR (Loans and Receivables). Used for non derivative financial assets with fixed or determinable payments that are not quoted in an active market.

• MFFVO (Mutual Fund Fair Value Option). Used with mutual funds with a Fair Value Option category. This regulatory category is for informational purposes only, and does not have a corresponding custom chart of account to use in ledger reporting. No core processes for Eagle's Accounting solution are affected.

• MFHFT (Mutual Fund Held for Trading). Used with mutual funds with a Held for Trading category. This regulatory category is for informational purposes only and does not have a corresponding custom chart of account to use in ledger reporting. No core processes for Eagle's Accounting solution are affected.

• O (Other). Used for other instruments.

Regulatory Category Effective Date

9137

Identifies the date that the regulatory category is eligible for processing. This field appears after you specify a regulatory category value. When you first enter a regulatory category, this field displays the entity's inception date by default, but you can override that value. When you change a regulatory category, you can specify the effective date for that change. If you change categories, be aware that the system uses the Regulatory Category Effective Date field value to determine the chart of account in effect for reporting purposes. Reports process based on the custom chart of account that was "active" during the period, using the report end date to determine what was active.

URGL Accounting Rule

1079

Specifies the URGL (unrealized gain/loss) rule for the entity/accounting basis that establishes proper treatment of unrealized market and currency gains/losses to ensure compliance with International Financial Reporting Standards (IFRS). This option is required only if you select a regulatory category of Amortized Cost, Available for Sale, Available for Sale at Cost, Fair Value Option, Fair Value – Other Comprehensive Income, Fair Value Profit Loss, Held for Trading, Held to Maturity, or Loans and Receivables. The URGL rule used for a Fair Value – Other Comprehensive Income basis determines whether the system recognizes realized gains and losses in other comprehensive income rather than earnings. For more information, see Manage URGL Rules. 

ECL Method

18053

Identifies the Expected Credit Losses (ECL) method used with Expected Credit Losses when you use US GAAP OR IFRS. The system assigns the ECL method based on the regulatory category you select, and you cannot change it. Values include:

• Non-US Treatment. Identifies an accounting basis that follows IFRS regulatory treatments for Expected Credit Losses. This value appears if you set the Regulatory Category to AC (Amortized Cost) or FVOCI (Fair Value - Other Comprehensive Income).

• US Treatment. Identifies an accounting basis that follows US GAAP regulatory treatments for Expected Credit Losses. This value appears if you set the Regulatory Category to AFS (Available for Sale or HTM (Held to Maturity).

Primary Basis Indicator

8130

Indicates whether the value you selected in the Accounting Basis field is the primary or secondary accounting basis on your entity. Options include:

• No. Default. The system uses this basis as the secondary accounting basis for the entity.

• Yes. The system uses this basis as the primary accounting basis for the entity.

Position Cash Segregation Basis Indicator

11675

Indicates whether to use the accounting basis as a custody basis for the selected entity for use in cash segregation. An entity can have only one custody basis. You typically assign a non primary, non controlling accounting basis as the custody basis. You must add the custody basis before you begin to process transactions for that entity. Options include:

• Yes. The system uses the selected accounting basis as the custody basis for cash segregation processing. The system assigns the appropriate default settings for the custody basis. For example, a custody basis does not require income, amortization/accretion, or ledger processing.

• No. The system does not create a custody basis for the entity. 

Cost Method

22

Specifies the cost method the system uses to calculate gain/loss amounts from the sale of security lots held by the entity/accounting basis. Eagle's Accounting solution is a multiple basis accounting system. If you set up an additional accounting basis, it must have the same cost method as the primary accounting basis. Options include:

• Identified. Default. The system determines which lot to relieve (sell) based on the value in the Lot Selection Method field. After identifying the lot, the system determines its cost and compares that to the lot's earnings to calculate a gain or loss amount for reporting purposes. If you select Identified, you can amortize fixed income securities using all the options the system has available. For more information, see Manage Amortization and Yield Calculations.

• Average. The system determines which lot to relieve (sell) based on the value in the Lot Selection Method field. After identifying the lot, the system determines the average of all of the holdings (total cost of holdings divided by the number of holdings) to calculate a gain or loss amount for reporting purposes. If you select Average, you can amortize fixed income securities using only selected options the system has available. The system applies the total amortization to individual lots based on the percentage of total par owned in the position. For Average Cost portfolios, Eagle Accounting supports only certain amortization methods. For more information, see Understand Average Cost Amortization.

Eagle Accounting supports the cost basis legislation regulations included in the Emergency Economic Stabilization Act of 2008. These regulations, which apply to various types of securities, affect debt securities and options posted on or after January 1, 2013. If a portfolio follows these mandatory guidelines, you must perform additional setup tasks to enable cost basis reporting. For information about enabling cost basis reporting, adding rules for covered and uncovered securities, defining mixed cost basis rules to override your basis level elections for the cost basis method, and information about changing cost methods, see the Cost Basis Legislation Quick Reference Guide.

Lot Selection Method

27

Specifies the lot selection method the system uses to relieve (sell) lots of a security held by the entity. Options include:

• First In First Out (FIFO). Lots acquired first are sold first. The oldest lot is sold first based on the holding date. If you set the accounting basis Cost Basis Covered Indicator field (tag 2818) to Y, unknown cost lots are relieved first. The oldest cost lot is sold first based on the holding date.

• Last In First Out (LIFO). Lots acquired last are sold first. The most recent lot is sold first based on the holding date. If multiple lots share the same holding date, the lot with the greatest event sequence is relieved first. The event sequence, set internally by the system, indicates the processing order of transactions within the same position.

• High Amortized Cost or High Cost (HCLOT). The lots with the highest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the maximum loss or the minimal gain.

• Low Amortized Cost or Low Cost (LCLOT). The lots with the lowest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the minimal loss or the maximum gain.

• High Original Cost (HORIG). The lots with the highest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the maximum loss or the minimal gain.

• Low Original Cost (LORIG). The lots with the lowest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the minimal loss or the maximum gain.

• Identified Lot (IDLOT). The specified lot or lots are sold first, which determines cost and tax implications. You can optimize this option to specific tax situations by selecting the specific lots to be sold. If you select this method, the lower pane in the close trade panel displays lot details for each available lot, as determined by the entity's controlling basis. If no controlling basis exists, it displays lots for the primary basis. You must specify the quantity for one or more lots that you want to relieve. The total quantity you specify for the open lots must match the quantity entered for the total close. The close trade relieves the selected lots in each of the entity's accounting bases, and keeps the lot structures in sync. The system uses the lot's Orig Event ID field (tag 457) to match a single open lot in one basis to corresponding multiple open lots in another basis, as needed. This can occur for lots fractured as a result of wash sale processing.

• Best Tax. The lots are selected and sold with the objective of taking losses first (short term then long term) and gains last (long term then short term). Lots are sold in the following order:

  1. Short term Losses. Lots that reflect a short term loss are sold first, beginning with lots that generate the greatest short term loss down to the least short term loss.

  2. Long term Losses. Lots that reflect a long term loss are sold, beginning with lots that generate the greatest long term loss down to the least long term loss.

  3. Short term No Gains or Losses. Short term lots that reflect no gain or loss.

  4. Long term No Gains or Losses. Long term lots that reflect no gain or loss.

  5. Long Term Gains. Lots that reflect a long term gain, beginning with lots that generate the least long term gain up to the greatest long term gain.

  6. Short Term Gains. Lots that reflect a short term gain, beginning with lots that generate the least short term gain up to the greatest short term gain.

• Tax Advantage (TXADV). The lots with the lowest tax liability are sold first to minimize tax liability.

• Versus Purchases (VSP). The lots are selected and sold based on lot purchase characteristics, such as the target purchase date and the target purchase price. This option must be specified at the trade level.

• Pro Rata. The lots are selected and sold based on a proportionate allocation. Note that this option is available at the mixed cost basis rule detail level but is not available at the entity/basis level.

• Tax Efficiency. The lots with the lowest tax liability are sold first to minimize tax liability. The system calculates the tax liability based on the manipulation of entity level tax factors for long and short term gains, long and short term losses, and currency gains. The system also incorporates the wash sale disallowance effect and considers the overall tax implications of closing each individual lot.

• Modified FIFO (MFIFO). The open lots with the same original acquisition date (tag 216) as the close transaction are sold first, starting with the lots with the lowest unit cost local. If there are no open lots with the same acquisition date as the close transaction, or all same day lots have been sold, the oldest open lots are sold first based on the acquisition date. Within a single acquisition date, the lots with the lowest unit cost local are sold first.

• Tax Service. (For future use)

Cost Method Cash

9924

Specifies the cost method the system uses to calculate gain or loss amounts from the sale of foreign currency lots held by the entity/accounting basis. The system bypasses rollback and replay processing for same day cost of cash activity. The system processes open and close trades for the same date in the order in which the trades arrive. As a result, some close trades may be processed prior to open trades. The average cost close trades do not include the cost of open trades that have not been processed. This may result in small variances in gains and losses for entities processing average cash. There is no effect on ID lot gains and losses. You cannot edit this field after the entity has holdings. Options include:

• Average. The system determines which foreign currency lot to relieve (sell) based on the value in the Lot Selection Method Cash field, which is always FIFO. After identifying the lot, the system determines the average of all of the holdings (total cost of holdings divided by the number of holdings) to calculate a gain or loss amount for reporting purposes.

• Identified. The system determines which foreign currency lot to relieve (sell) based on the value in the Lot Selection Method Cash field, which is always FIFO. After identifying the lot, the system determines its cost and compares that to the lot's earnings to calculate a gain or loss amount for reporting purposes.

Accounting Basis Lot Selection Rule

7102

Relieves the current holdings of a security for a non primary accounting basis. This field determines processing for the open lots that are eligible to be closed on an additional accounting basis. Options include:

• Use Basis Value Unless Event = IDLOT or VSP. Default. The system uses the value in the accounting basis table unless the incoming event has a lot selection method of Identified Lot (IDLOT) or Versus Purchase (VSP). That is, if the incoming event has a lot selection method of IDLOT or VSP, the system utilizes the IDLOT or VSP lot selection method to close the lots for that particular accounting basis. If the incoming event does not have an IDLOT or VSP lot selection method, the system utilizes the lot selection method on the accounting basis.

• Use Event Value. The system uses the lot selection method from the incoming event and does not utilize the lot selection method in the accounting basis table.

• Always Use Basis Value. The system uses the accounting basis default regardless of what lot selection method is on the incoming event.

• If Event = Primary Basis use Basis Table Else use Event. The system uses the accounting basis lot selection rule if the lot selection method on the event matches the lot selection of the primary accounting basis. If the lot selection method on the event does not match the lot selection method on the primary accounting basis, the system utilizes the lot selection method on the incoming event.

• If Event = IDLOT or VSP use IDLOT or VSP Else if Event = Primary Basis use Basis Table. The system uses IDLOT or VSP lot selection processing if the incoming event has a lot selection method of Identified Lot or Versus Purchase. If the lot selection method from the incoming event is not IDLOT or VSP but the lot selection on the event matches the lot selection method on the primary accounting basis then the system uses the lot selection method of the accounting basis record. If the lot selection method on the event does not match the primary accounting basis lot selection method and the event does not equal IDLOT or VSP, the system uses the lot selection method on the entity.

Account Currency

86

Specifies the base currency for the entity/accounting basis. You cannot edit this field after the entity has holdings.

Accounting Period Frequency

624

Specifies the number of accounting periods per calendar year for the entity/accounting basis. You cannot edit this field after the entity has holdings. Options include:

• Daily. Default. The system establishes one accounting period for each day of the year. If the entity is using a business calendar, the system establishes an accounting period for business days only.

• Monthly. The system establishes twelve accounting periods for a given year.

• Weekly. The system establishes fifty two accounting periods for a given year.

Bifurcation Method

5825

Specifies how the system handles gains and losses on foreign securities and foreign debt instruments for the accounting basis. Gains and losses from foreign security and debt instruments may be posted to currency gain/loss ledger accounts, capital gain/loss ledger accounts, or to both. There is no currency gain/loss for domestic securities so you can select No in this field if your organization trades only in domestic securities. For more information, see Understand the Bifurcation Method. Options include:

• Section 988. Default. The system determines whether to bifurcate (split into parts) the gain/loss between capital and currency based on the security type. You need to specify which security types are eligible for section 988 bifurcation using the Codes workspace. If a security is not set up with a processing security type code, it is not eligible for bifurcation under Section 988. In this case, the system posts capital and currency realized gains/losses to the capital realized gain/loss general ledger accounts.

• All. The system bifurcates (split into parts) the gain/loss between capital and currency regardless of the security type. The system posts the capital realized gains/losses to the capital realized gain/loss general ledger accounts and the currency realized gains/losses to the currency realized gain/loss general ledger accounts.

• No. Default. The system does not bifurcate (split into parts) the gain/loss between capital and currency. The system posts the capital and currency realized gains/losses to the capital realized gain/loss general ledger accounts only.

Wash Sale Inhibit Indicator

775

Indicates whether the system can apply the wash sale rule to trades. Options include:

• Yes. Default. The system does not apply the wash sale rule. The system records a loss on a sale of a security when you buy substantially identical securities within 30 days before or after the sale. If you select Yes, the system does not process wash sales, regardless of the value you specify for the Wash Sale Eligible Flag field on a trade panel.

• No. The system applies the wash sale rule. The system does not record a loss on a sale of a security when you buy substantially identical securities within 30 days before or after the sale. If you select No, the system uses the value you specify for the Wash Sale Eligible Flag field on the trade panel to determine whether to process wash sales.

Primary Amortization/Accretion Rule

3197

Specifies the amortization/accretion rule for the primary accounting basis that the system uses to process earnings. You can set up amortization/accretion rules for IFRS that amortize average cost portfolios on an effective yield basis. If you change the Primary Amortization Rule at the accounting basis level, the next time you process earnings the system creates a retrospective amortization rule calculation from the original settlement date of the trade (on all open lots). The system calculates the trade yield based on the primary amortization/accretion rule for the entity, so it is important to keep the values that exist on the entity and the primary accounting basis consistent. The system updates values changed on the entity panel via the primary accounting basis, but does not change entity values when you make the change through the Edit a Basis on a Portfolio panel. See Set Up an Entity/Accounting Basis for Amortization for more information.

Secondary Basis Replication Rule

7249

Specifies which events to replicate to the secondary accounting basis. The system automatically replicates events where the Message Type is MTOPEN, MTCLOSE, MTLINK, MTCANCEL, MTADJUST, and MTCASH. It replicates events where Message Type is MTADMIN and the Sub Message Type is REBOOK. And it replicates events where the Sub Message Type is LOT_LVL_MISCINC. The system does not replicate expenses with an event type of MTQUERY and manual ledger entries with an event type of MTLEDGERPOST. To replicate capital stock and distributions, you must set the Secondary Basis Replication Rule field (tag 7249) to Replicate All Events and the Cash Processing field (tag 8125) to Yes. Options include:

• Replicate All Events. Events related to securities for all processing types apply to the entity/secondary accounting basis. This includes capital stock activity and distributions.

• Replicate Fixed Income Securities Only. Events related to only fixed income securities; that is, securities with a processing security type that starts with the prefix DB apply to the entity/secondary accounting basis.

Cash Processing

8125

Indicates whether the system processes cash receipts/disbursements for the entity/accounting basis. Options include:

• Yes. The system processes cash receipts/disbursements for the entity/accounting basis. You must set the Cash Processing field to Yes to replicate capital stock activity and distributions. To replicate capital stock and distributions, you must set the Secondary Basis Replication Rule field (tag 7249) to Replicate All Events and the Cash Processing field (tag 8125) to Yes.

• No. The system does not process cash receipts/disbursements for the entity/accounting basis. If you select No, be aware that when processing corporate actions in the additional basis, the system creates cash positions.

Ledger Processing

8128

Indicates whether the general ledger is configured for the entity/accounting basis. Options include:

• Yes. The entity/accounting basis is using the general ledger.

• No. The entity/accounting basis is not using the general ledger.

Postmatrix Type

11708

Specifies which ledger posting matrix the entity/accounting basis uses when determining the accounting ledger postings required for a given event. Options include:

• Core. Default. Used if an entity is an investment or mutual fund.

• Insurance. Used if an entity is insurance related (Schedule D). event.

Unrealized Gain/Loss Indicator

5383

Indicates whether the system automatically posts unrealized gains/losses to the ledger during valuation for the entity/accounting basis. Options include:

• Yes. The system automatically posts unrealized gains/losses to the ledger during valuation. Select this value only if you are using Eagle's Pricing Center to post unrealized gains/losses.

• No. The system does not automatically post unrealized gains/losses during valuation. You must post them manually.

Gain/Loss on Paydowns

1871

Specifies how the system handles the gain/loss on paydowns (repayment of part of an outstanding loan balance) for the entity/accounting basis. This field is used with factor based debt instruments such as mortgage backed securities. For more information, see Understand Mortgage-backed (MBS) and Asset-backed (ABS) Securities. Options include:

• Gain/Loss. The system generates a gain/loss on a paydown and displays the Paydown Gain Loss Account field.

• Amortization. Default. The system records a gain/loss generated by a paydown as accelerated amortization.

Paydown Gain Loss Account

4519

Determines whether the paydown on a gain/loss is posted to the capital or income ledger account for the entity/accounting basis. This field appears when you select Gain/Loss from the Gain/Loss on Paydowns field. For more information, see Understand Mortgage-backed (MBS) and Asset-backed (ABS) Securities. Options include:

• Capital. If the position is under 365 days of ownership, the system posts the gain/loss on a paydown to the Realized Gain on Investments Short Term (3006000111) and Realized Loss on Investments Short Term (3006000112) general ledger accounts. If the position is over 365 days of ownership, the system posts it to the Realized Gain on Investments (3006000101) and Realized Loss on Investments (3006000102) general ledger accounts.

• Income. The system posts the gain/loss on a paydown to the Realized Loss on Investments (4004000102) and Realized Gain on Investments (4004000101) general ledger accounts.

Principal Loss on Paydown Processing Flag

2925

Allows you to select the method in which to process the principal loss on a paydown. The system uses the Principal Loss Factor field (tag 2926) value specified for the final factor to process the principal loss. For more information, see Understand Mortgage-backed (MBS) and Asset-backed (ABS). Options include:

• Accelerated Amortization. The system reduces the cost of the position by the total reduction of shares. The offset to cost is accelerated amortization. This field is only allowed if the Gain/Loss on Paydowns field is set to Amortization.

• Realized Gain/Loss. Default. The system treats the portion of a paydown that is the result of a loss (write down) at a price of zero. Eagle Accounting treats the portion of a paydown that is the result of a loss (write down) at a price of zero.

• Share Adjustment. The system treats the portion of paydown that is a result of a loss (write down) as a share adjustment (increase or decrease) and does not adjust cost for the loss portion.

Call Redemption Gain/Loss Indicator

8916

Indicates whether the system processes gains/losses on calls, puts, and pre-refund corporate actions for the entity/accounting basis. This field is required if you process debt instruments. For more information, see About Entity Setup for Calls, Puts, and Pre-Refunds. Options include:

• Gain/Loss. Default. The system redeems gains/losses that result from calls, puts, and pre-refund corporate actions.\

• Amortize. The system amortizes gains/losses that result from calls, puts, and pre-refund corporate actions. It applies an accelerated amortization method.

Sink Fund Gain/Loss Flag

9923

Specifies how the system processes gains and losses for sinking funds for the entity/accounting basis. Options include:

• Treat Gain/loss from Sinking Fund Payment as Gain/Loss. Default. The system treats the gain or loss created by the sinking fund payment as a gain/loss on both the subledger and general ledger.

• Treat Gain/loss from Sinking Fund Payment as Accelerated Amortization. The system treats the gain or loss created by the sinking fund payment as accelerated amortization on both the subledger and general ledger.

• Capitalize Sinking Fund Payment. The system uses the sinking fund information in the schedule table to calculate amortization yield. The system also reduces the principal of the tax lot in a non-prorated way when processing the sinking fund payment so that no gain or loss occurs.

• If Pro Rata Sinking Fund Capitalize Else Calculate Gain/Loss. The system looks to the value in the Pro Rata Sinking Fund Flag field specified for the security to determine processing. If the value for that field is set to Yes, the system capitalizes the sinking fund payments for the security. If the value is set to No, the system treats the gain/loss from the sinking fund payment as a gain/loss.

• If Pro Rata Sinking Fund Capitalize Else Calculate Amortization. The system looks to the value in the Pro Rata Sinking Fund Flag field specified for the security to determine processing. If the value for that field is set to Yes, the system capitalizes the sinking fund payment for the security. If the value is set to No, the system treats the gain/loss from the sinking fund payment as accelerated amortization for the security.

Short Term Discount Accrual

8919

Indicates how the system accrues interest or accretes a short term discount bond (processing security type of DBDCST) for the entity/accounting basis. If you elect to accrue short term discount bonds, disable OID amortization in the amortization rules for processing security type DBDCST. Also, set the Short Term Price Method field to Cost to avoid double counting of accrual of interest income in the mark to market process. Options include:

• Amortize. Default. The system accretes the short-term discount bond and posts the accretion as amortization on the subledger and general ledger.

• Accrue Discount. The system treats the accretion of the short term discount bond as an accrual and posts the accretion as interest income on the general ledger in the accrual fields (Daily, Month to Date, Period to Date, Life To Date). The system also posts the accretion as interest income on the subledger. For the calculation of gain/loss, the system treats the accrual of interest income, like accretion of discount.

Chart of Account

1641

Specifies the entity's chart of account to use in ledger reporting for the accounting basis. The system is installed with a core chart of accounts that contains more than 400 account numbers and descriptions. Custom chart of accounts are also available for each of the IFRS regulatory categories. You must select a value for this field even if you are not using the general ledger. The default field value is STAR. If you edit this value after the entity has holdings, the changes go into effect on the specified Regulatory Category Effective Date field value.

Ledger Granularity Rule Name

8939

Specifies the name of the ledger granularity rule associated with the entity/accounting basis. A ledger granularity rule allows you to customize both your core ledger posting for a breakout by holding term and your custom postings based on security master attributes as well as targeted securities.

Ledger Granularity Rule

8933

Displays the instance number associated with the Ledger Granularity Rule Name selected.

Ledger Granularity Rule Effective Date

155

Specifies the first date when transaction processing will apply the ledger granularity rule selected for the entity/accounting basis.

Holding Term Method

11479

Indicates whether the entity/accounting basis calculates the holding term for short term versus cash equivalent holdings at 90 days or at 3 months. If you use ledger granularity rules to customize your core ledger posting for a breakout by holding term, this option determines how Eagle Accounting calculates that holding term. This field appears after you select a ledger granularity rule. Options include:

• 90 Days. When you use the system to calculate the holding term, it designates lots bought within 90 days to maturity as cash equivalent (CE) and designates lots bought within one year to maturity, taking leap years into account, as short term (ST).

• 3 Months. Default. When you use the system to calculate the holding term, it designates lots bought within three months to maturity as cash equivalent (CE) and designates lots bought within one year to maturity, taking leap years into account, as short term (ST).

Final Close Income Recognition Date

10070

Specifies how the system recognizes closed earnings, amortization, and OID (Original Issue Discount) amortization. It determines on what dates the system posts the income that occurs on a disposition transaction. Options include:

• Settle Date. Default. The system recognizes closed earnings, amortization, and OID amortization through the settlement date of the close on a daily basis. Eagle Accounting recognizes the income daily between trade and settle date of the disposition.

• Trade Date. The system recognizes closed earnings, amortization, and OID amortization as one lump sum on the trade date of the close. Eagle Accounting posts the income that normally occurs between trade date and settle date all on the accounting date trade date of the transaction.

Coupon Cash Entitlement Level

11852

Specifies the level at which the system drops coupons for the entity/accounting basis. Options include Position Level and Lot Level.

Swap Accrual Method

1184

Specifies how the entity/accounting basis posts interest accruals and dividends for swaps. Options include:

• Income/Expense. Posts interest accruals and dividends to Income and Expense accounts in the general ledger.

• Unrealized. Posts interest accruals and dividends to unrealized Capital accounts in the general ledger.

Posting Cut Off Date

11848

Sets the cutoff date for posting transactions. Transactions where the Trade Date field is greater than the cutoff date are not allowed. The system rejects these transactions prior to executing any database reads.

Expense & Capitalize Trans Cost for Opens & Closes

10705

Determines if transaction fees are expensed or capitalized for acquisitions, and if transaction fees are expensed or netted against proceeds for dispositions. This option supports International Financial Reporting Standards (IFRS) requirements for trades and transaction fees. You cannot edit this field once the entity has holdings. The following trade related fees are considered transaction fees: Commission field (tag 47), SEC Fee field (tag 48), Tax field (tag 46), Stamp Duty Tax field (tag 51), Other Fee field (tag 3752). The Federal Tax Withholding field (tag 8078) and State Tax Withholding field (tag 8079) are not considered transaction fees. Options include:

• Capitalize Trans Fees on Opens & Net Trans Fees Against Proceeds on Closes

• Expense Trans Fees on Opens & Net Trans Fees Against Proceeds on Closes

• Expense Trans Fees on Open and Close Trades.

Backup Withholding Indicator

2768

Controls whether backup withholding is required. TEFRA legislation requires backup withholding for clients that have not provided a taxpayer ID. Options include No (Default) and Yes

Cost Basis Covered Indicator

2818

Determines whether a portfolio follows the mandatory reporting guidelines. Options include:

• Yes. The system creates a bifurcated position and determines uncovered/covered statuses for the securities/lots the portfolio holds as new trades are received.

• No. The portfolio does not follow mandatory reporting guidelines.

Book Value Breakdown Flag

2904

Determines the book value breakdown for fixed income securities for the entity/accounting basis. Options include:

• Yes. Process book value by splitting the cost of the transaction into two parts: Par and Cash Premium/Discount (CP). CP is the difference between Par and the price paid. Par is booked to cost of investments and CP is booked to an asset CP account. As close transactions are booked, the Par, CP, and any other fees booked are proportionally closed.

• No. Does not process book value by component.

Business Sector

9512

Identifies the business sector associated with the entity. You use this field when performing Weighted Average Balance (WAB) calculations.

Margin Transaction Fees

3889

Defines the treatment of commissions for securities with variation margin. Options include:

• Expense. The system recognizes expenses for commissions on the opening and closing of contracts with variation margin. The commissions are recognized as a transaction cost rather than netted in the initial recognition of unrealized gains/losses. You can view the transaction fees on the General Ledger report.

• Capitalize. Default. The system nets the initial recognition of unrealized gains/losses on the opening and closing of contracts with variation margin.

PIK URGL Flag

3859

Indicates whether unrealized gain/loss is posted for a Payment in Kind (PIK) bond interest receivable. Options include:

• Yes. Allows the accounting basis to post daily mark to market entries for interest receivable when a security has a processing security type (PST) of Interest Bearing Debt PIK (DBIBPK) and there is a PIK Receivable Mark to Market schedule for the coupon period. For more information, see About Calculating URGL for a PIK Receivable Balance.

• No. The Accounting basis is not able to daily mark to market PIK unrealized.

ILB Gain/Loss Flag

3856

Indicates how Eagle Accounting treats the catch-up inflationary income that occurs at maturity for deflation protected Inflation linked bonds in the event that the index ratio at maturity is less than the ILB Min Index Ratio. For more information, see Understand Inflation Linked Bonds. Options include:

• Maturity Gain/Loss and Daily Income. The catch-up inflationary income recognized as part of a deflation maturity to bring the security to the ILB minimum inflation index ratio is treated as realized gain/loss, and posts to a Gain Loss account. Daily Inflation linked Income is treated as Inflation Income, and posts to an inflation income general ledger account.

• Both Income. Both the daily inflation income and the catch-up inflation income recognized as part of the deflation maturity are treated as inflation income. It posts to an Income general ledger account.

No Negative Income Flag

3857

Determines whether the system allows a tax lot to have negative life to date income. The option to prevent a tax lot from having life to date negative income is only available for Identified Cost tax lots. This field appears if you set the Cost Method field to a value of Identified. Options include:

• Allow Negative Income. Default. The system recognizes negative income.

• Do Not Allow Negative Income. The system does not recognize negative income. The system uses the following calculation to determine if there is negative income: Total Income LTD = Accrual LTD + Amortization LTD + ILB LTD + OID LTD. 
  If Total Income LTD is less than zero, the earnings process first looks to deferred ILB income if it exists. If Total Income is still less than zero, amortization income is deferred until income exceeds zero.

Tax Exempt Processing Flag

4948

Determines whether income is posted to taxable or tax exempt general ledger accounts. This field works with the Federal Tax Indicator field (tag 1545), which exists at the security level. The Tax Exempt Processing Flag field impacts the Net Investment Income (NII) process when calculating the mixed expense taxable allocation percentage. If this field set to Yes, the net distributable income is processed against tax exempt income and expenses. Options include:

• Yes. If the security level Federal Tax Indicator field is set to No, the system posts the income to tax exempt general ledger accounts. If the security level Federal Tax Indicator field is set to Yes, the system posts the income to taxable general ledger accounts.

• No. The system posts the income to taxable general ledger accounts. 

Expense Election

2285

Determines whether to process mutual fund expenses with different accounting treatments on each accounting basis. Note the secondary basis expense election is tied to the primary basis expense election. Options include:

• Yes. If you set the Expense Election field on the Create Master Fund panel to Replicate Accruals and Settlements, this accounting basis replicates accruals and settlements on an expense by expense basis. If you set the Expense Election field on the Create Master Fund panel to Replicate Settlements Only, this accounting basis replicates expense settlements only on an expense by expense basis.

• No. No replication occurs.

Cost Cash Processing

5006

(Hidden field) Indicates whether the accounting basis uses COSTCASH processing to track foreign cash positions. Options include:

• No. The basis does not use COSTCASH processing. When a non-base transaction is settled, the STAR engine does not create a COSTCASH position. For more information, see Understand Entities That Do Not Use COSTCASH Processing.

• Yes. Default. The basis uses COSTCASH processing to track foreign currency positions. When a non-base transaction is settled, the STAR engine creates a COSTCASH position. For more information, see Manage COSTCASH Processing.

Cash Based Div Recognition Flag

16160

Indicates whether to process cash dividend income, tax, and reclaim in the accounting ledger on ex-date or upon the settlement of the associated cash. For more information, see Recognize Dividend Income on a Cash Settlement Basis. Options include:

• No. Default. The system recognizes dividend income on an ex-date basis.

• Yes. The system recognizes dividend income on a cash settlement basis.

FX Election for Cash Div Recognition

16161

If you recognize dividend income on a cash settlement basis, indicates whether the system selects the FX rate used for foreign dividend settlement using the ex-date FX rate or the settlement date FX rate. It applies only to the settlement of dividends issued by a foreign security. This field appears if you set the Cash Based Div Recognition Flag field to a value of Yes. Options include:

• Ex-date. Recognizes the income using the ex-date FX rate.

• Settlement Date. Recognizes the income using the settlement date FX rate.

Equity Method Treatment

16084

If the selected accounting basis uses the equity method of accounting, identifies the treatment of assets held under the equity method of accounting. You cannot change this value when you edit an entity/basis. 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.

Income Received Accounting Flag

16557

Determines whether the selected accounting basis uses the income posting treatment to create separate entries within the ledger to identify interest income received and/or dividend income received in unique income ledger accounts. This option is for use by Insurance companies that need to reconcile the investment accounting activity reflected on their investment schedules to related ledger accounts on their trial balances. See Record Unique Ledger Postings for Income Received. Options include: 

• Yes. Allows the system to use the income posting treatment to create separate entries within the ledger to identify interest income received and/or dividend income received in unique income ledger accounts. The system records unique ledger postings for interest received recorded in an income ledger account for interest income received and for dividend income received in an income account for dividend income received. When interest receivables and/or dividends receivables are reduced for cash received, additional postings entries are required to record interest or dividends received. 

• No. The system does not use the income posting treatment to create separate entries within the ledger to identify interest or dividends received in unique income ledger accounts.

Ledger Closeout Override Period

18570

Specifies whether a custom transfer profile is assigned to an entity or accounting basis to override any regulatory or default closeout rules already assigned. Before you override the profile, you need to build a custom profile. For more information, see Manage Custom Profiles.

Mark to Market Accounting Flag

16634

Determines whether the selected accounting basis uses the mark-to-market breakout. This breakout is for use by Insurance companies that need to reconcile the investment accounting activity reflected on their investment schedules to related ledger accounts on their trial balances. See Record Unique Ledger Postings for Income Received. Options include: 

• Yes. Uses the mark-to-market breakout. Eagle Accounting create separate mark to market unrealized gain/loss accounts for each foreign-denominated receivables and payables. This only includes interest receivables, interest payables, dividends receivables, dividends payables, investment receivables, and investment payables accounts. It applies to all accounting bases as well as the STAT basis. In addition, the offset to the mark to market record in unrealized gain/loss non-asset accounts has its own accounts related to the specific receivable/payable account in Eagle Accounting. 

• No. Does not use the mark-to-market breakout. Eagle Accounting's mark to market (MTM) process creates one asset/liability combining all mark to market unrealized FX gains/losses.

IO Security Amort /Income Flag

17387

 Determines how the system recognizes amortization and accretion on the General Ledger for securities with a processing security type (PST) of Interest Only Factor Based Debt Instrument (DBFBIO). Options include:

• Separate Income and Amort on Ledger. Bifurcates the income streams with amortization going to an amortization account and the interest going to investment interest income. Eagle Accounting posts amortization and accretion to the following general ledger account after a split: Amortization of Premium (4001000401), Investment Interest Income (4001000100).

• Combine Income and Amort on Ledger. Default. Nets together amortization and accretion in the Investment Interest Income (4001000100) account on the general ledger.

Deliver By Settlement Dt

18298

Determines whether the system processes activity for Deliver and Interportfolio Transfer (IPT) events only on those lots that passed settlement date. Options include: 

• Yes. The system processes activity for Deliver and Interportfolio Transfer events only on those lots that passed settlement date for the entity/accounting basis. For IPTs, this applies only to events with Quantity/Ratio set to Quantity with a quantity transfer amount. 

• No. Default. The system processes activity for Deliver and Interportfolio Transfer (IPT) events on any lot, based on trade date, for the entity/accounting basis.

Begin Date By Settlement

18299

Identifies the date on which the system begins to process activity for Deliver and Interportfolio Transfer (IPT) events only on those lots that passed settlement date for the entity/accounting basis. Prior to this date, the system processes any activity for Deliver and Interportfolio Transfer (IPT) events on any lot based on trade date. This field appears only if you set Deliver By Settlement Dt to Yes. 

Mixed Basis Functionality

Mixed Cost Basis Indicator

11664

Determines if the entity/accounting basis uses a mixed cost basis. A mixed cost basis allows you to override the entity's accounting basis level elections for the cost method, lot selection method, and lot selection rule used during transaction processing. You can define mixed cost basis rules based on transaction criteria that includes processing security type (PST) group, processing security type, security type, cost basis rule type, and asset ID, as well as by using each of these criteria in combination with a specified entity. For more information, see Manage Mixed Cost Basis Rules. Options include No (Default) and Yes. If you select Yes, the Primary Basis Mixed Cost Basis Rule Name field becomes available.

Mixed Cost Basis Rule Name

11666

Specifies the name of the mixed cost basis rule to use for the entity/accounting basis. This option appears if you set the Mixed Cost Basis Indicator field to Yes.

Corporate Action Fields

Corporate Action FX Rule

9705

Specifies the foreign exchange rate that the system uses for posting corporate actions for the entity/accounting basis. Options include:

• Recent. Default. Uses the trade date exchange rate if available. Otherwise, uses the most recent exchange rate.

• Actual. Retrieves only the exchange rate for the trade date. Rejects the transaction if no exchange rate is found

Awarded Rights Expiration Rule

9921

Specifies how the system handles the treatment of loss generated by the expiration of a right or warrant for the entity/accounting basis. Options include:

• Loss. Default. The system applies the loss generated by the expiration of a right or warrant to the right or warrant.

• Transfer. The system applies the loss generated by the expiration of a right or warrant to the original security.

Cash Div Cash Entitlement Level

9922

Specifies whether to use lots or positions to determine cash entitlements for cash dividends for the entity/accounting basis.

Taxable Override Indicator

11081

Determines whether you can override the entity tax rate. Options include No (Default) and Yes. If you select Yes, the system treats all mergers as nontaxable, regardless of whether you set them up as taxable or nontaxable.

Non Tax Merger Close Method

11495

Specifies the method to use to close lots on the original security for non-taxable mergers for the entity/accounting basis. Options include:

• Pro-Rata Method. Default. The system closes a portion of all lots, ignoring the lot selection methods.

• Lot Selection Method. The system selects the lots to close based on the lot selection method found on the accounting basis.

Limit Gain Loss Eligible

2487

Determines if gain loss processing occurs for corporate actions for certain cash/stock mergers. Requires the Limit Gain Loss Indicator field (tag 8553) to be set to Yes on the corporate actions panel to be in effect. When applicable, at the lot level, the gain associated with these mergers is the lesser of the cash amount or the gain to be recognized had the entire transaction been taxable. If the result is a loss, it is disallowed. The disallowed component is then treated as a return of capital. In the case of certain taxable mergers, any loss that is generated at the lot level is disallowed. There are U.S. tax provisions that limit the amount of reportable gains and losses for certain mergers with taxable components. Options include No and Yes. If you select Yes, gain/loss processing occurs for nontaxable mergers with taxable cash. For taxable mergers, gain/loss rules are used for the calculation of losses only.

Income/Prepayment Fee Treatment

16739

Identifies the types of corporate actions for the entity's selected accounting basis that use the income/prepayment fee treatment. The income/prepayment fee treatment supports NAIC accounting requirements relating to prepayment penalties, acceleration fees, and make-whole call provision fees on bonds. The system uses this setting in conjunction with the Income/Prepayment Fee Treatment field applied at the corporate action transaction level. For more information, see Understand Income/Prepayment Fee Treatment. Options include:

• All. Apply the NAIC income/prepayment fee treatment to calls and principal repayments. 

• Calls Only. Apply the NAIC income/prepayment fee treatment only to calls. 

• Principal Repayments Only. Apply the NAIC income/prepayment fee treatment only to principal prepayments. 

• None. Do not apply the NAIC income/prepayment fee treatment to corporate actions. Also used with null values for this field. 

NOTE:  If you enable use of the income/prepayment fee treatment for specific types of corporate actions at the entity/basis level, be aware that the system does not consider the basis level Redemption Gain/Loss Indicator field setting for transactions that use the income/prepayment fee treatment. If you set the Redemption Gain/Loss Indicator field to Amortization, the system treats those transactions as if you set the Redemption Gain/Loss Indicator field to Gain/Loss.

Source Fields

Security Price Source

513

Specifies the source the system uses for pricing securities for the entity/accounting basis.

Exchange Rate Source

514

Specifies the pricing source the system uses for pricing foreign exchange rates for the entity/accounting basis. Used to restrict factor processing to entities with certain exchange rate sources.

Valuation FX Rate Source

11652

Specifies the pricing source the system uses for pricing foreign exchange rates for the entity/accounting basis. Used for valuation, that is, calculating market value.

Forward Price Source

2920

Specifies the pricing source the system uses for pricing forward contracts for the entity/accounting basis.

MTM Rate Source

5064

Specifies the pricing source the system can use to mark foreign receivables to market. You can specify use of the MTM Rate Source or the FX Source (tag 1344) when you run the global mark to market process.

Short Price Source

5422

Specifies the pricing source the system uses for pricing short positions for the entity/accounting basis.

Short Term Price Method

1872

Specifies how the system prices short term debt instruments for the entity/accounting basis. The system identifies a short term fixed income security if the period from Issue Date to Maturity Date is less than or equal to 365 days. It does not do so by Processing Security Type. Options include:

• Cost. The system prices the short term debt instruments based on the amortized cost of the securities. No unrealized gain/loss entries are created. You must select a value of Cost if you are processing short term discount accruals.

• Market. The system prices the short term debt instruments using market prices rather than the amortized cost of the securities. Unrealized gain/loss entries are created.

Price Level

12007

Identifies the default price level that the system uses if the accounting basis prices short term fixed income securities priced at amortized cost. This field appears if you set the Short Term Price Method field to Cost. The field displays a value of 1 by default, but you can change it to a value of 1, 2, or 3. Eagle Accounting uses the price level in Fair Value Level reporting.

S2P Direct Interface Fields

Delta Process Flag

4758

Indicates whether the backdated transactions and affected position records are transferred from STAR to PACE for reporting purposes using the STAR to PACE Direct interface. The default is No (Default) and Yes.

Create Performance Cash Flows in PACE

5398

Indicates whether the STAR/PACE integration procedure processes cash currency and copies cash flow information for the entity/accounting basis for reporting by Eagle's Performance solution. If you use Eagle Performance, select Yes. Options include No (Default) and Yes.

Store Cash Positions in PACE

5563

Indicates whether the STAR/PACE integration procedure exports cash positions for the entity/accounting basis from STAR to PACE Direct. If you use Eagle Performance, select Yes. If your organization does not need currency balances, select No (default) to improve efficiency.

Value at Cost - No Price Found

11454

Specifies whether to use the cost value when no price is found for the selected entity/accounting basis. This setting does not affect futures contracts market values. If you run STAR to PACE Direct in Batch mode using the Recent price option (that is, you set Price Date Switch to Recent in the Transfer Data - Batch panel), be aware that any recent price is used before the asset is priced at cost. If you select Yes to use the cost value, if no price is found, STAR to PACE Direct defaults the amortized cost into the PACE market value fields in the position detail and lot level position tables. If you select No to use the default value of 0, the amortized cost is not used even if there is no pricing available.

Tax Equalization Fields

European Equalization Flag

11540

Specifies whether to run Equalization for the selected master fund entity/accounting basis. You can use the European Equalization calculation to support German Tax and EU Savings calculations. Options include Yes and No (Default).

European Equalization Rule Name

11543

Specifies the European Equalization Rule name to use. This field is required if you set the European Equalization Flag field to Yes.

Month End Fields

Month End Processing Indicator

9697

Indicates whether the accounting basis is using month end processing, which allows you to report transactions in the correct month end report without having to reopen closed daily valuation and accounting periods. Options include:

• Yes. The basis uses month end processing. If you set this field to Yes, the system sends messages to establish month end accounting periods. If you use Control Center, you must also select Yes if you want to view funds in Month End Control Center. Additional fields in this section become available.

• No. The basis does not use month end processing.

Month End Long Price

9676

Specifies the month end pricing source for long positions. This option appears if you set the Month End Processing Indicator field to Yes.

Month End Short Price

9677

Specifies the month end pricing source for short positions. This option appears if you set the Month End Processing Indicator field to Yes.

Basis Processing Rule

Basis Processing Rule Name

1085

Specifies the name of the accounting basis processing rule, which contains a set of income characteristics for a specified portfolio/account basis.

For insurance accounting clients, this field can also identify the Client ETF Valuation Rule Name used for processing systematic valuation on the ETF securities attached to the rule. Systematic Valuation is intended only for Statutory Accounting purposes. Insurance clients can use it on the STAT accounting basis.

Basis Processing Rule ID

2965

Specifies the ID of the accounting basis processing rule.