Rate Basis Reported on Investment Schedules

Rule function

The rule ensures that investment schedules for Business Development Companies (BDC) are completed correctly by checking for the presence of interest rate and maturity dates. The interest rate disclosures should include both the spread and the rate basis for variable rate investments. Each debt investment should include the maturity date of the investment. Here is the detailed rule function:

The rule ensures that when a filer reports the spread of a variable rate investment, they also report the rate basis for that investment. This is crucial for providing complete and accurate information about variable rate investments.

The second component of the rule checks that if an interest rate is reported then a maturity date must also be reported. The rule checks for an interest rate to determine that the investment is a debt investment.

Conditions:

The first component of the rule checks for the existence of a concept representing the spread of a variable rate investment (InvestmentBasisSpreadVariableRate) with any investment identifier axis and unit.
It then checks for the existence of a corresponding concept representing the rate basis (InvestmentVariableInterestRateTypeExtensibleEnumeration) with the same investment identifier axis and unit.
It then checks for the existence of a corresponding concept representing the rate basis (InvestmentVariableInterestRateTypeExtensibleEnumeration) with the same investment identifier axis and unit.
If the spread is reported without the rate basis, the rule triggers an error.

The second component of the rule checks for the existence of one of the following concepts:

• InvestmentBasisSpreadVariableRate,
• InvestmentInterestRate,
• InvestmentInterestRatePaidInKind,
• InvestmentInterestRatePaidInCash,

If a value is reported for any of these concepts then it is expected that a value is reported for the maturity date using the concept InvestmentMaturityDate.
The rule only checks the values where the facts are reported with the InvestmentIdentifierAxis axis.

Problem solved by the rule

This rule ensures that filers provide complete information about variable rate investments by reporting both the spread and the rate basis and the maturity date of an investment. This enhances the accuracy and completeness of investment schedules.

Example rule message

Rule 1

The filer has reported a value for the concept InvestmentBasisSpreadVariableRate with a value of 0.02. This concept is used to report the spread of a variable rate investment. The filer has not reported the rate basis for this investment. Please ensure that the rate basis is reported for this investment.

The properties of this InvestmentBasisSpreadVariableRate fact are:
Period: 2024-12-31 to 2025-12-31
Dimensions: InvestmentIdentifierAxis=Investment123
Unit: pure

Rule Element ID: 10653

Rule 2

The filer has reported a value for the concept InvestmentInterestRate with a value of 0.02. This concept is used to report the interest rate of a debt investment. For debt investments the filer should also report the maturity date of the investment. Please ensure that the InvestmentMaturityDate concept is also reported for this investment.

The properties of this InvestmentInterestRate fact are:

Period: 2024-12-31 to 2025-12-31
Dimensions: InvestmentIdentifierAxis=Investment123
Unit: pure

Rule Element Id: 10654

For Developers

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Rule element ID index

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