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EPBCS SM - Amortization Amounts do not Adjust after a Debt Buyback (Doc ID 2835245.1)

Last updated on NOVEMBER 02, 2022

Applies to:

Oracle Enterprise Planning and Budgeting Cloud Service - Version 21.12.51 and later
Information in this document applies to any platform.


Debt is created with a premium/(discount). The premium/(discount) is amortized over the life of the contract. Before the debt is mature, if  there is a buyback, the premium/(discount) associated with the buyback is written off. Hence, the amortization ought to be adjusted accordingly. However, as the debt is paid down, amortization does not adjust as expected.


For example:

There is a $500m 10yr senior debt that will mature in 2026. There is a buyback $53.141m in 1Q21 and another $114.583m in 3Q21, so the amortization of the discount ought to reduce based on these buybacks, in account v2652.85:06.  The model keeps the same amount $0.034m instead, from the original calculation.


 Paying down debt and amortization is not adjusting future amounts.



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