In order to compute a correct cashflow for an interest bearing loan contract, starting from a statusDate later than the IED of the contract, some value for accruedInterest at statusDate must be provided. Since the daily accruedInterest amount of each loan may not be conveniently available in the operational business systems of some financial institutions, the ACTUS reference implementation provides automated estimation of accruedInterest when (1) the accruedInterest (IPAC) contract term is not specified ( or specified to have value NULL ) (2) the contractType is interest bearing (3) the statusDate contract term - specifying a start date for cash flow compution - is later than the contract initialExchangeDate (IED). The user can prevent accrued interest estimation by specifying any explicit value ( including 0.0) for the IPAC contract term - in which case that value will be used.
The descript of the accruedINterest (IPAC) continue term in the actus-dictionary should make clear that if no value for the accruedInterest (IPAC) contract term is specified, an estimated value may be used and that in some curcumstances this estimated value will be incorrect.
In order to compute a correct cashflow for an interest bearing loan contract, starting from a statusDate later than the IED of the contract, some value for accruedInterest at statusDate must be provided. Since the daily accruedInterest amount of each loan may not be conveniently available in the operational business systems of some financial institutions, the ACTUS reference implementation provides automated estimation of accruedInterest when (1) the accruedInterest (IPAC) contract term is not specified ( or specified to have value NULL ) (2) the contractType is interest bearing (3) the statusDate contract term - specifying a start date for cash flow compution - is later than the contract initialExchangeDate (IED). The user can prevent accrued interest estimation by specifying any explicit value ( including 0.0) for the IPAC contract term - in which case that value will be used.
The descript of the accruedINterest (IPAC) continue term in the actus-dictionary should make clear that if no value for the accruedInterest (IPAC) contract term is specified, an estimated value may be used and that in some curcumstances this estimated value will be incorrect.