Overview

The EIR-based interest adjustment, Deferred Balance Amortization, the process is executed post the computation of the Expected Credit Losses (ECL Run). Only those accounts that are classified as Amortized Cost and the ones identified for Fee Amortization are considered for this process:

• Amortized Cost Classification - This happens as part of the Classification Process or Run.
• Identifying Accounts for EIR Adjustment - This selection is enabled using a Rule within the Expected Credit Loss Run of the application.

These two filters help in identifying the accounts for which EIR-based interest adjustments have to be computed. Transactions related to Loans, Money Markets, and Investments are considered for EIR Based Interest Adjustments.

Note:

For initial execution, the IFRS Reporting Run Info table needs to be populated with the following default values:

V_BATCH_RUN_ID: -1
N_RUN_SKEY: -1
FIC_MIS_DATE: The current execution date for EIR Adjustment Run
LAST_ACCRUAL_DATE: The last accrual/execution date for EIR Adjustment Run