Convert a Position to the Equity Method of Accounting

In the Convert Positions Equity Method panel, you can convert a position from another system to the Eagle Accounting system when it uses the equity method of accounting. You can convert a position for a common stock or Joint Venture/Limited Liability/Partnership security for all accounting bases converting the asset to Eagle Accounting.

The Convert Positions Equity Method panel differs from the Conversion of Position to Eagle STAR panel that you can access in the Book Trade tool. The Conversion of Position to Eagle STAR panel processes for each accounting basis individually. In contrast, the Convert Positions Equity Method panel allows you to convert multiple accounting bases at a time for the position.

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 convert a position to the equity method of accounting:

In Accounting Center, in the left navigation pane, click Transactions > Equity Method > Convert Positions Equity Method.
You see the Convert Positions Equity Method panel.
Under Entity Information, select the entity and accounting basis associated with the equity method of accounting where you are converting the position.
When you select an entity, you see a row for each of the entity's accounting bases. You must select an entity with at least one 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 conversion 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.
Click Submit.
The system submits an ECCONV event.

After the conversion, the position is ready for processing using the new EMA/STAR accounting method selected going forward. You must use the Equity Method transactions to maintain EMA positions rather than entering open, close, and income adjustment transactions through the Book Trade tool.

Convert Positions Equity Method Panel Options

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

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 primary accounting basis for the entity by default. After you select an entity, a row for each accounting basis associated with the entity appears in the lower pane.
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
Conversion Date	35	Specifies the effective date of the conversion.
Accounting Date	36	Specifies the date the conversion 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.
Settle Date/Begin Accrual Date	37	Specifies the settlement date for the conversion. Accruals in Eagle Accounting can begin on this date.
Event Type	55	Displays the business intent of the transaction. For example, ECCONV.
Long/Short Indicator	15	Displays an L (long) or S (short) to indicate whether the position is long or short.
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.
Xref Type	1234	Specifies the cross reference type associated with the security.
Xref 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.
Issue Currency	85	Displays the local currency of the security.
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.
Equity/Cost Method
Current Position EMA/Cost Flag	7008	Displays the current accounting method associated with the equity method of accounting assigned to the selected accounting 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 for the selected accounting basis. This field appears if the EMA Treatment field has a value 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 for the selected accounting basis. This field appears if the EMA Treatment field has a value of Other. Options include: Equity Method Conversion Core STAR Conversion
EMA/Cost Flag	16092	Displays the accounting method the system assigns as a result of the conversion for the accounting basis/security. Values include Equity Method (EMA) for equity method of accounting, or the STAR method of accounting.
Original Trade Information
Original Acquisition Date	216	Specifies the date that the position was originally acquired.
Holding Period Date	164	Specifies the holding period date for the position.
Original Settlement Date	154	Specifies the original settlement date for the lots converted to Eagle Accounting.
Conversion Information Local
Quantity	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.
Current Ownership Percentage	7660	Displays the current ownership percentage for the position.
Ownership Percent	16085	Specifies the percentage of ownership in a partnership, joint venture, or limited liability company to use for the conversion. If the security has a quantity type of Percentage, you must specify a value. If the security has a quantity type of Shares or Units, you can specify a value to use for information only. The ownership percentage is the same across all accounting bases.
New Ownership Percentage	7661	Displays the ownership percentage to apply.
Price	45	Specifies the trade price per share. The value must be greater than zero.
Commission Local	47	Specifies the amount of the trade commission.
SEC Fee Local	48	Specifies the SEC fee.
Tax Amount Local	46	Specifies the tax amount on the transaction.
Stamp Duty Tax Local	51	Specifies the stamp duty amount on the transaction.
Other Fee Local	3752	Specifies any additional fees on the transaction.
Original Cost Local	3747	Specifies the original local cost amount for the selected accounting basis.
Total Book Cost	50	Specifies the net amount of the transaction in local currency for the selected accounting basis.
Local to Base FX Rate	87	Specifies the local to base foreign exchange rate. Both the FX rate and the Cost of Investments Base (tag 478) fields are available. If you input the FX rate, the system calculates the Base cost and vice versa. This FX rate/Base Cost can differ across bases.
Impairment Ltd Local	2700	Specifies the impairment/credit loss life-to-date amount in local currency for the selected accounting basis.
Commitment	7664	Specifies the total amount committed by the investor in the partnership, joint venture, or limited liability corporation. The system only tracks the commitment for the STAT basis, if one exists.
Conversion Information Base
Original Cost Base (No Amortization)	3746	Specifies the original cost of the open lot stated in base currency.
Total Book Cost + PTD Income Base	478	Specifies the base amount of the trade for the selected accounting basis. Represents the cost of investments base, based on local cost and the FX rate.
Impairment Ltd Base	2701	Specifies the impairment/credit loss life-to-date amount in base currency.
Impairment Fx Ltd	16231	Specifies the life-to-date impairment amount caused by FX impairment adjustments.
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 only tracks the commitment for the STAT basis, if one exists.
Unrealized Market Gain/Loss
Unrealized Market Type	7004	Indicates whether the selected basis for the position has unrealized market gain or loss. This field appears in the lower pane for a basis with the EMA/Cost Flag set to EMA. Options include: Unrealized Loss Unrealized Gain
Unrealized Market Loss Local	16104	Specifies the amount of investment market loss on an EMA security in local currency for the selected basis. This field appears in the lower pane if you set the Unrealized Market Type field for the basis to a value of Unrealized Loss.
Unrealized Market Gain Local	16105	Specifies the amount of investment market gain local on an EMA security in local currency for the selected basis. This field appears in the lower pane if you set the Unrealized Market Type field for the basis to a value of Unrealized Gain.
Unrealized Market Loss Base	16106	Displays the amount of investment market loss on an EMA security in base currency for the selected basis. This field appears in the lower pane if you set the Unrealized Market Type field for the basis to a value of Unrealized Loss.
Unrealized Market Gain Base	16107	Displays the amount of investment market gain on an EMA security in base currency for the selected basis. This field appears in the lower pane if you set the Unrealized Market Type field for the basis to a value of Unrealized Gain.
Unrealized Currency Gain/Loss
Unrealized Currency Type	7006	Indicates whether the selected basis for the position has unrealized currency gain or loss. This field appears in the lower pane for a basis with the EMA/Cost Flag set to EMA when you select a security with a processing security type of Common Stock (EQCSCS). Options include: Unrealized Gain Unrealized Loss
Unrealized FX Loss Base	16108	Specifies the amount of currency loss on an EMA security in base currency for the selected basis. This field appears in the lower pane if you set the Unrealized Currency Type field for the basis to a value of Unrealized Loss.
Unrealized FX Gain Base	16109	Specifies the amount of currency gain on an EMA security in base currency for the selected basis. Used for STAT basis EMA treatment. This field appears in the lower pane if you set the Unrealized Currency Type field for the basis to a value of Unrealized Gain.
Undistributed Income/Loss
Investment Income/Loss Type	7007	Indicates whether the selected basis for the position has undistributed income or loss. This field appears in the lower pane for a basis with the EMA/Cost Flag set to EMA. Options include: Income Loss
Undistributed Investment Loss Local	7519	Specifies the amount of undistributed investment loss on an EMA security in local currency for the selected basis. This field appears in the lower pane if you set the Investment Income/Loss Type field for the basis to a value of Loss.
Undistributed Investment Income Local	7512	Specifies the amount of undistributed investment income on an EMA security in local currency for the selected basis. Used for Other accounting treatment. This field appears in the lower pane if you set the Investment Income/Loss Type field for the basis to a value of Income.
Blended Income FX Rate	484	Specifies the FX rate used to calculate the base market value.
Undistributed Investment Loss Base	7515	Displays the amount of undistributed investment loss on an EMA security in base currency for the selected basis. This field appears in the lower pane if you set the Investment Income/Loss Type field for the basis to a value of Loss.
Undistributed Investment Income Base	7516	Displays the amount of undistributed investment income on an EMA security in base currency for the selected basis. This field appears in the lower pane if you set the Investment Income/Loss Type field for the basis to a value of Income.
PACE Performance Fields
Performance Price	4598	Specifies the price for use by Eagle's Performance solution.
Performance Amount Local	4597	Specifies the local performance flow amount for use by Eagle's Performance solution. Mapped to Local_total_flow in the PACE cash activity table.
Settlement Information
Broker Name	1235	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.
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.
User Char1	1887	Specifies one of three user defined fields.
User Char2	1888	Specifies one of three user defined fields.
User Char3	1889	Specifies one of three user defined fields.
Other Information
Reason	56	Contains user defined information about the event.
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.
Client Specific Original Event ID	457	Specifies the client-specific original event ID.
Gift/Inheritance Fields
Acquisition Type	2425	Identifies an inheritance or gift. This is a brokerage election. Options include Gift or Inheritance.
Ownership Transfer Date	2426	Specifies the date of death when you transfer inherited funds or specifies the gift date for gift transfers.
Fair Market Value Flag	2427	Indicates whether to track fair market values. This field appears if you set the Acquisition Type field (tag 2425) to a value of Gift. Options include Yes or No.
Fair Market Value Price	2452	Specifies the fair market for the gift. You can enter zero as a fair market value price. This field appears if you set the Fair Market Value Flag field (tag 2427) to a value of Yes.
Fair Market Value Local	2428	Specifies the fair market value local. This field appears if you set the Fair Market Value Flag field (tag 2427) to a value of Yes.
Fair Market Value Base	2429	Displays the fair market value base. This field appears if you set the Fair Market Value Flag field (tag 2427) to a value of Yes.
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.
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.