Processing Impairments by Amount

In the Impairments panel, you can process an impairment for a single entity to write up or write down investments based on an amount. You can impair a holding based on specific lot or by position. You must enter a separate impairment transaction for each accounting basis where you want to impair the lot or position.
To process an impairment by amount:

1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
2. Enter Impairments in the Start Search text box.
3. Click the Impairments (Accounting Center) link to access the panel.

You see the Impairments panel.

1. In the Impairment Type section, click the Impairment Processing Flag field and select a value of Position or Lot.
2. In the Entity Information section, select a single entity and accounting basis.
3. In the Security Information section, click the Impair by Option field and select a value of Amount.
4. Click the Event Type field and select a value of Impairment.
5. Complete the remaining options on the Impairments panel.

You must identify the direction of the write-off, indicate if the position/lot is long/short, and identify the security and open lot, as appropriate. You can specify the impairment reason, the adjustment amount in the Local Cost Adjustment, Credit Loss Local Adjustment, and Non-Credit Loss Local Adjustment fields, and can specify the cost offset account. For more information about specific options, see the "Impairments Panel Options" section.

1. Click Submit.

The system calculates the impairment amount or credit and non-credit loss, as applicable, for the selected lot or for each open lot held within the selected position, and posts the related accounting entries. The system adjusts the book value/current amortized cost of all relevant open lots held for the selected positions by the calculated impairment that will be required to reduce amortized cost.