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Bond purchasers
Effective interest method
yield
to maturity, constant rate, level
yield bond accounting software
Related pages:
Bond issuers
page
Bond
purchasers, straight line method
page
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Software to
calculate monthly and
yearly
• Premium amortization
• Discount accretion
• Cost basis and book value determination for
•
Municipal bonds
• Corporate bonds
• Governments
• Notes
• Bills
• Agencies
• GNMA's, other mortgage backed securities with
monthly reductions to Par
Amortize virtually all premium
and discount instruments
• Amortize multiple files within a portfolio
Combine and amortize all at the
same time
Amortize each file individually
• Calendar and fiscal year reporting
• OID amortization for individuals living in states allowing
recognition tied to Original
Issue Discount amortization
Amortize your discount at time
of purchase and also amortize
the bond's original discount at
time of issue
Amortize both discounts
For any month and
For an entire year
Amortize and
account for ALL
bonds the same
time
• Effective interest rate calculations for
• Fixed rate bonds
• Variable rate, step bonds,
adjustable, floating rate
• Zero rate
•
Convertible
The software
calculates a
blended,
constant rate
from which to
derive monthly
recognition
• Callable
- with a call
price
• Callable - without a price
Coupon interest tracking and
reporting
• Purchased interest tracking until received
• Earned interest and totals
• Cash interest income received and totals
• Monthly Cash due tickler report showing
Coupon
interest
Purchased
interest
Par
receivable
due to
maturity,
sale or
call
Subtotals
by bond
management
company/brokerage
firm/depository
Special features
• Callable bond continuation if the bond is not
called
Premium,
discount recognition is
finalized as of the call date
Coupon
interest continues to the bond's
maturity date
• Variable rates
and
Rate changes due to any reason
Recalculation
of the effective
interest rate
Coupon
interest calculation at the new
rate as of the change date
• Reductions to Par
Early call, redemption
Partial call, redemption
Partial sale
Reductions to
par for any
reason
A
reduction to par
generates a proportionate
recognition of
premium or
discount balance
• Group totals
Group bonds
and obtain recognition totals by
as many different categories as
desired
•
Export
Copy bonds,
calculations and totals for
desired period and paste to a
spreadsheet
Automatically
create an Adobe pdf file for
permanent storage
Use the software to
•
Amortize your
bonds
•
Amortize client
bonds
Many of our clients are CPA,
accounting
firms and financial advisors
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Client testimonials ....
Thank you!
This program has just made my life so much easier.
I can finally stop adding up all of my
amortization schedules!
Georgia
We installed your software and just used it for the first time.
I can't believe how much work it will save us each month.
What used to take hours is now done in a matter of minutes.
Your product performs exactly as advertised!
Texas
Thanks.
Your customer service is fantastic!
Have a great week.
Washington
Our outside accountants just completed their audit.
This is the first year we've been using your software AND
the first year we received a clean audit report.
New
York
I'm a partner in a small CPA firm.
We were recently engaged to audit municipal bonds issued by a local agency.
Bond discounts needed to be recalculated using the effective interest method.
Calculations with annual reports had to be provided for each of the past seven years.
I can't believe how easily your software allowed us to finish the entire job in such a short period of time.
New
Mexico
Many thanks for the excellent help and
support.
I was really not expecting feedback so
quickly.
Tennessee
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Price and free demo .... |
Prices
Effective
Interest Method
Click to open and view
Price page
and obtain a free demo.
Straight
Line Method
Click to open and view
Price page
and obtain a free demo.
Bond file
calculation services
We can calculate a bond file on a one-time
basis.
Premium and discount amortization for a month.
For an entire calendar/fiscal year.
Reports and supportive data are provided in
Excel.
Typical turn-around time is less than 2 hours.
For more information, Email
Bond file calculation services
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Highlights ....
Effective
interest method
compliance for
all bonds
simply
by placing them
into a
spreadsheet file
with these
columns:
• Cusip or
other identifier
• Par
• Begin/settlement date
• Maturity date
• Coupon rate
• Price (as $amount or %)
• Other
values
applicable to
your bonds such
as Call date,
any Call price,
Convertible date
and price
....
Create the file
once.
The software
does everything
else.
Account for dozens, hundreds, thousands of bonds
•
Current period
•
Prior periods
• Future periods
Effective interest rate calculation for each
bond
•
Fixed rate bonds
•
Variable rate,
steps
•
Callable bonds
•
Convertible rate
bonds requiring
the calculation
of constant rate
•
Virtually any
premium,
discount
instrument
Premium
amortization
•
Monthly expense totals
•
Yearly totals
Discount
accretion
• Monthly
income totals
•
Yearly totals.
OID for investors in need of corresponding
recognition
•
Original issue
discount
amortization
•
Monthly totals
•
Yearly totals
Effective rate recalculation due to rate
changes,
partial call,
other reductions to
par
Coupon interest tracking
•
Both Cash
and
Earned (accrued)
interest
•
Interest due
status for all
bonds
• Earned interest income
•
Interest
accruals
Accrual
reversals
Asset receivable
balances
Cash due reporting
•
A list of
everybody and
how much they
owe you
•
Cash interest
due this month
• Uncollected purchased
interest due
•
Cash due for par
resulting from maturity,
sales, partial
redemptions and
calls
Gains,
losses on sale
to provide net
position
Subsidiary
schedules
• Detail and totals within general ledger account
• Detail and totals using other subtotal
categories
Monthly reports
•
Premium,
discount
recognition.
Balances.
•
Cost
basis. Book
Values.
Annual reports
•
Calendar and fiscal
year recaps
•
Cash received
interest +/-
discount and
premium
recognition
•
Earned interest
+/- discount and
premium
recognition
Finalized records report
•
All matured,
sold and called
bonds
Bond schedules
• Audit and exam detail support lifetime schedule
for each bond
Client
accounting
• Import your client bonds to the software
• Amortize bonds for any month, any year
• Generate reports
• Export
results
1-800 and email software support
Export bonds, current and prior period
recognition,
schedules and
reports to Excel
A proven system in use by
business,
individuals, accounting firms and
other
organizations
throughout the
country
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Currently using another method?
Another system? No system?
The software can recalculate premium and
discount balances for current and prior periods.
Or, the software can preserve your current premium and
discount balances.
No book value, cost basis adjustments necessary.
Try the free demo
available on the Price page, below.
See how
easy it is to amortize your own premium and discounts.
Nothing
to learn
• Enter basic
information about bonds
to a spreadsheet
• Automatically
import bonds to software
at any time
- Copy all
worksheet bonds
- Paste to the
software
- Copy.
Paste. Done.
- Monthly
effective interest
method calculations
- Yearly
effective interest
method calculations
• View results.
Print results.
• Export bonds,
balances and totals to
to a spreadsheet
•
Business, financial institutions,
admin services, insurance agencies, other bond purchasers
Automatically import bond
worksheets to the software on demand
Calculate effective interest rates
Premium amortization -
effective interest method
Discount accretion -
effective interest method
Interest accruals
Group totals
File totals:
Any month
Any year. Fiscal. Calendar.
Or range of months such as a quarter.
Detail lifetime schedules for each bond
satisfy audit requests
•
CPA and accounting firms. Financial advisors.
Business, government, individual investor clients
Import,
calculate recognition for their bond files
Monthly, quarterly totals
Calendar and fiscal year totals
Recalculate a file for prior years
Audit
Due diligence
Export, archive calculations and reports to Excel
and other spreadsheets
Exclude bonds which were added after a desired calculation time period
Example: A worksheet contains bonds from 2013, 2014,
2015, 2016 and 2017
When working with the year 2016, you can exclude the 2017 bonds from calculations and view.
Client servicing
Import and calculate worksheet bonds on behalf of a client for any period
Export results and
file totals to a spreadsheet
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Enhanced
capabilities for business ....
General Ledger Posting and Reporting Module includes
• General ledger journal voucher and posting file for premium, discount recognition
Asset and liability general ledger account numbers
Income and expense general ledger account numbers
• Subsidiary listing Trial Balance with totals by each set of general ledger accounts
Income and expense totals
Premium and discount balance totals
Book value totals
For any month, quarter or year
•
Interest
accruals with journal voucher and general ledger posting file
Purchasers: Income and receivable general ledger account numbers
Issuers: Expense and liability account numbers
• General ledger posting files for all of the above
Postings have an Undo function to reverse a posting made in error
Postings can be formatted for uploading to any general ledger system
• Bond issuers:
Separate amortization of bond acquisition charges, issue costs
Calculate premium and discount recognition for
• Purchased or Issued
- Municipal bonds
- Agencies
- Corporate, government, notes, bills, debentures ....
- Virtually any instrument having a premium or discount
• Premium amortization using the effective interest method
Amortization for each bond plus a detailed, lifetime schedule
Amortization and balance totals for all bonds with a premium
• Discount accretion using the effective interest method
Accretion for each bond plus a detailed, lifetime schedule
Accretion and balance totals for all bonds with a discount
• Constant yield, effective interest rate calculations under FASB 91
• Coupon rate interest calculation for each bond, plus a total for all bonds
Interest accruals with general ledger posting file
• Calculate
Dozens, hundreds, thousands of bonds at the same time
Monthly. Quarterly. Range of months. Calendar and fiscal year totals.
Current period. Prior periods. Future periods.
• Fixed rate bonds plus
• Convertible bonds
The system calculates a constant rate
The constant rate and effective interest rate determine amortization, accretion recognition
• Zero rate bonds, convertible or otherwise
• Variable rate bonds, floating rate, steps
Calculation of initial effective interest rate
Effective interest rate recalculation with each rate change
• Call dates, with or without a call price
Premium, discount calculations to a call date Cost Basis, Book Value
• Reductions
Bonds with reductions to par, such as a partial sale, recall, paydown
Accelerated recognition of premium or discount balance proportionate to reduction in par
• Existing bonds
Two solutions:
Recalculate existing bonds using original dates
or
Retain current cost basis, book value. Convert existing bonds and balances with no journal adjustments.
Simple to use
Basic information for a bond portfolio is maintained
in one or more spreadsheets
Par, settlement, maturity, coupon rate ....
Worksheet templates with headers and column
documentation come with the software
Enter bond data and
Copy/paste bonds from existing worksheets
Add/insert new bonds at any time
User defined Group categories to segregate bonds
and provide totals by/for any purpose.
The software automatically imports a worksheet
and performs required calculations
Constant yield, FASB 91 effective interest rate
Premium amortization
Discount accretion and more
Import and calculate dozens, hundreds,
thousands of bonds in a matter of seconds
A single software system provides ....
• Accounting -
Effective interest
method portfolio
calculations and totals
for multiple bonds
• Calculator - Effective interest method for one bond at a time
• 360/365/366 day basis
Portfolio NET totals consisting of
Coupon rate interest
+ Discount Accretion
- Premium Amortization
= NET for any Month. Quarter. Calendar or fiscal year. Go back in time. Go forward in time.
Bonds consist of loan packages? View our Omnibus FASB 91 premium and discount amortization software for
•
MBS, GNMAs, syndicated packages, LSBO, secondary market, grouped originations, bundled loans, bonds with monthly par reductions and more.
Premium and discount portfolio accounting
• Generate income and expense detail plus totals for:
• Any month
• Any quarter
• Any annual, yearly period - calendar or fiscal
• Historical - view a portfolio as it was at any time in the past
•
360/365/366 days in a year basis at the bond level matches coupon interest basis
•
User defined Group totals
Purchased bonds
• Investors, traders, business, institutions, trust departments, client accounting services ....
• Calculate discount income, premium expense on a monthly, quarterly, annual basis for all bonds at the same time
Issued bonds
• Municipalities, taxing districts, corporate .... (amortize bond issuance costs, too)
• Calculate discount expense, premium income on a monthly, quarterly, annual basis for all bonds at the same time
• Amortize original issue, debt issuance amounts, too
Variable rate instruments, such as Steps
• The system calculates a new effective interest rate with each rate change, including mid-month dates
• The system switches to calculating coupon interest at the new rate as of the actual rate change day
Convertible rate bonds
• The system calculates a blended, constant interest rate
Premium and discount recognition is the difference between effective rate interest and constant rate interest
• The system switches to calculating coupon rate interest at the convertible rate on the convertible date
Call Dates
• Premium and discount recognition to a Call Date
Call Prices
• Premium, discount recognition to a Cost Basis Call Price
• Example: Purchase 100,000 at 97 with a Call at 102 and the system accretes 5,000 to a Cost Basis 102,000
• Example: Purchase 100,000 at 103 with a Call at 101 and the system amortizes 2,000 to a Cost Basis of 101,000
Sale or early call, redemption date
• The system recognizes the remaining premium, discount balance in full
• If a Call Price is involved, the system makes all necessary adjustments, including the recapture of any recognized portion of the Call
Partial sale, early call, redemption
• The system accelerates premium, discount recognition by the percentage of: ReductionToPar / Par
• Remaining premium or discount is calculated over the remaining term
• If a Call Price is involved, the system makes all necessary adjustments, including the percentage recapture of any recognized portion of the Call
Reductions to Par
• Accelerated recognition of premium and discount balances for
• Partial and complete sales
• Partial and complete recalls
• Other reductions to Par for any reason
Comply with these FASB, GAAP recognition methods ....
• FASB 91 effective interest method, level yield
Calculates effective interest rates for fixed rate and convertible bonds
Amortization and accretion based on the difference between the effective interest rate and coupon rate
• Constant interest rate method
Calculates constant rates for convertible bonds
Amortization and accretion based on the difference between the effective interest rate and constant rate
Easily account for exceptions arising from ....
• Early calls, redemption (the software recognizes premium, discount balance in full)
• Partial calls, redemption (the software accelerates premium, discount recognition by the call amount percentage)
• Sales (the software recognizes premium, discount balance in full)
• Partial sales (the software accelerates premium, discount recognition by the par reduction percentage)
• Periodic reductions to Par for any reason (the software accelerates premium, discount recognition by the par reduction percentage)
• Purchased bonds
- Held to maturity or trade/sale/early call date
• Fixed rate bonds
and
• Convertible bonds
- Including initial rate of zero
- Convertible rate amortization, accretion at Constant interest rate
- OID bonds
- For variable rate bonds when future dates, rates are unknown, view our Omnibus Variable, Floating Rates software page)
• Discount accretion
- Individual bond level
- File, portfolio totals
- General ledger totals
- Lifetime accretion schedule for a bond
• Premium amortization
- Individual bond level
- File, portfolio totals
- General ledger totals
- Lifetime amortization schedule for a bond
• OID
- OID accretion totals (for more on this, view our Original Issue Discounts OID amortization page)
- Group and track OID with purchased bonds accretion totals
- Compare recognition amounts between OID and purchased
Monthly
Quarterly
Annual (fiscal and calendar year totals)
• Early call/redemption/sale date
- Recognize deferral balance in full as of any date for any reason
• Interest at the coupon rate
- Calculate coupon rate interest and accruals for any period, too
- Supports 360/365/366 day basis
• Generate:
- Premium recognition subtotals
- Discount recognition subtotals
- Accounting reports
- Journal voucher posting source document
- General ledger transaction posting file (supports any chart of accounts)
• Existing bonds
- Preserve current deferral balances or
- System can calculate current balances
Software to
• Calculate FASB 91 effective interest rate for all bonds at the same time
• Effective interest method recognition under FASB 91 for
- Premium amortization
- Discount accretion
- Issue costs - Amortized and tracked separately
- Group totals
- File totals
- Remaining balance and book values
• Accounting recognition periods:
- Monthly
- Quarterly
- Other multiple months
- Annual: Calendar or fiscal year
- Past, current and future periods
• Lifetime amortization, accretion schedule for each bond
General Ledger Reporting ....
• General ledger reporting
- Subsidiary ledger balancing report
Detail and totals by each general ledger account for
- Premium and discount recognition
- Accumulated
- Remaining balance book values
- Journal voucher posting source document
- General ledger transaction posting file
- Formatted for uploading to your general ledger system
• Interest accruals at bond coupon rate:
- Monthly amount (book to receivable) or
- Gross accrual from an accrual date (for book and reverse operations)
- Accrual report, journal voucher posting source document and general ledger transaction posting file
• NET report - what did you earn on your portfolio?
Coupon interest for the period
+ Discount accretion
- Premium amortization
+ Gain on Sale
= NET result for each bond and entire portfolio
Your
existing
records
• Easy conversion ....
- Preserve current general ledger balances or
- Have the software recalculate
premium and discount amortization from Begin dates.
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Maintain bond records in one or more worksheets. At any time,
1) Import a worksheet
2) Select a calendar date and calculate
-
Premium
and
discount
recognition
for an
entire
file
- Issue costs, fee recognition for an entire file
- FASB 91 effective rate, calculations and compliance
- Interest accruals
-
All
monthly
accounting
reports
- General ledger postings
Direct post and
Allocate to multiple cost and revenue centers
-
Lifetime
amortization
schedule
for any
bond
-
In
a matter
of seconds!
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Getting started is easy.
No adjusting journal entry required.
Be up and running in no time.
Export calculation results and reports to Excel, other spreadsheet.
For internal use.
Email to outside auditors.
Records retention.
Export reports to a worksheet.
Or save bond worksheets with a unique monthly name.
Import, calculate, report at any future date.
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During
import, the
software:
-
Determines
premium or
discount amount
-
Calculates
effective
interest rates
-
Provides:
Monthly premium
and discount
amortization and
accretion based
on selected
calendar date
For each record:
Monthly premium
and discount
recognition
Accumulated
recognition
Deferred premium
or discount
balance
Book value
carrying balance
Summary totals
of the above by
category:
Premium totals
Discount totals
You can
also:
Generate
amortized income
and expense
totals for a
Month
Quarter
Calendar or
fiscal year
As of a prior or
future period
View a lifetime
month by month
amortization and
recognition
schedule for any
record
Copy and paste
results
elsewhere
More
about bond
accounting and
reporting ....
All
monthly reports:
View, print,
export
Subsidiary
listing trial
balance by
general ledger
account
Detailed
records plus
accounting
subtotals
Journal voucher
General ledger
debit and credit
posting summary
recap
General
ledger posting
file preparation
Supports any
chart of
accounts
Interest
accruals
Calculate an
accrual for the
current month
only or
Calculate a
total accrued
using an "accrue
from" date
Supports accrue
and accrual
reversal
functions
General ledger
posting account
numbers or
system assigned
defaults
Projections:
Calculate
interest accrual
through end of
year, other
period
Early
maturity, call
date column
Take full
premium and
discount
balances prior
to scheduled
maturity date
System
automatically
finalizes a
record if
redeemed early,
sold, called or
otherwise
disposed
Period
calculations
Fiscal and
calendar years
Determine all
balances "as of"
a future month,
EOY period
Determine
income, expense
spanning
multiple months
Allocation
capabilities
Distribute
income, expense
to revenue and
cost centers
Also available in a version where
a file consists
of
Bonds
representing groups and
packages (see
our
Omnibus software):
-
Individual
rates,
composite,
dollar weighted
-
Mortgage backed
securities
- LSBOs
Purchased loans
Participations
- Other
packaged
instruments
Held to term
Average life
-
Amortizing
-
Irregular
principal
receipts stream
Variable amounts
Curtailments,
payoffs
Partial sales
-
Weighted rate
changes
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Calculations for desired period
• Any
month
• Any year
• Current period, prior periods, future period projections
• Go back in time. Go forward in time.
• Monthly totals, quarterly, other multiple month totals
• Yearly totals - Calendar year, Fiscal year, Tax
year
• Income and expense for the period
• Earned Interest
• Premium and discount remaining balances
• Cost basis, book values
Reports
• Group totals to aggregate bonds for any user defined purpose
• Other user defined subtotal descriptions
including
general
ledger accounts
• Premium amortization, discount accretion report
• Cash Due this month report includes
Coupon
interest due
Uncollected
purchased
interest
Par which may be
due resulting
from
maturities,
sales and calls
Gain on sales
(or reduction
for Loss)
• Coupon interest status report showing next due
dates with
interest amount
portion through
the reporting
month
• Finalized records report showing all bonds that
matured, were
sold, called or
otherwise paid
off
• Accrued interest report
• Accrued interest reversal report
Easy to operate
- Nothing to
learn
• Automatically import all bonds at the same time from a
spreadsheet,
such as Excel
Maintain bond
information in a
spreadsheet you
already know how
to operate
Copy an entire
spreadsheet
Paste all bonds
to the software
import screen -
it's that easy
Excel users can
open, select one
or multiple
worksheets and
import bonds
directly (skip
the copy/paste
function)
• Calculate all bonds
File totals
Lifetime amortization and
accretion
schedule for any
bond
• Run reports
• Export results to a spreadsheet
Designed for and
in use by ....
Business,
other
organizations
requiring
general ledger
reporting
• Accrual basis accounting
• Premium amortization, discount accretion
• General ledger posting files for premium and
discount
recognition
With subsidiary
ledger Balance
Sheet account(s)
listing
• Monthly accrued interest with general ledger
posting file
With subsidiary
listing for
Accrued Interest
Receivable asset
account(s)
• Accrued interest reversal file with general
ledger posting
file
Accrued interest
through prior
months is
reversed for
bonds with cash
due this month
• Coupon interest status report showing who owes
you how how much
With subtotals
by income
account
• Cash Due report (a tickler file of who owes you
money) listing
all funds due
each month
including
Coupon interest
Purchased
interest not yet
received
Par due to
maturities,
sales, calls,
reductions for
other reasons
Adjusted for any
gain or loss on
sale
• A free standing calculator to calculate an effective rate
and generate a
schedule for
other bonds
Individual bond
owners,
investors
• Premium amortization, discount accretion
• Coupon interest status report showing who owes
you how much
With subtotals
by payer
• Cash Due report (a tickler file of who owes you
money) listing
all funds due
each month
including
Coupon interest
Purchased
interest not yet
received
Par due to
maturities,
sales, calls,
reductions for
other reasons
Adjusted for any
gain or loss on
sale
• A free standing calculator to calculate an
effective rate
and generate a
schedule for
other bonds
CPA, accounting firms
•
Use the software
to import, calculate, audit and
report client files
Financial
advisors. Trust
departments.
•
Use the software
to manage, import, calculate, export
client files
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