Discount Factor for the EIR Method

Use the instrument’s accrual basis to calculate Discount Factor Term in Years under the Effective Interest Rate (EIR) method. This replaces the earlier default of Actual/Actual for this method.

Improve discount-factor accuracy by applying the accrual basis defined for the instrument.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

Retain the EIR method configuration. Recalculate representative accounts whose instrument accrual basis differs from Actual/Actual, and verify Discount Factor Term in Years and the resulting discount factor.

Key resources

https://docs.oracle.com/en/industries/financial-services/ofs-analytical-applications/profitability-balance-sheet-base/index.html