Acq Date


Key Acq Date in
Ledger Entry refers to the acquisition date AD of the referenced traded asset.
Equivalently, this is the date when the referenced asset was first traded.
Note, the acquisition date AD is assumed known (becomes available information) only on AD and thereafter.
Before AD, the asset is assumed as non-existing.

For example, consider a tradable being a 10-year bond issued on Janyary 1, 2020 that happens to carry a Ledger Entry with Acq Date = January 1, 2022
If one attempts to calculate its price as of a date prior to January 1, 2022, the result will be 0 because as of that valuation date it is not yet known that a long position on the 10-year bond will be assumed in the future.
The alternative treatment, whereby the bond's cash flows after January 1, 2022 were taken into account, would result in treating a future trade as a forward contract from the valuation date's point of view, which is clearly incorrect.

With regard to what cash flow dates are precisely considered, the following holds:
It is assumed the asset is acquired at the COB (Close Of Business) time of the date AD, which limits exposure only to those asset-linked cash flows occurring strictly after AD
Therefore, the related income calculated by the
Price function between any time and AD will not include a likely cash flow occurring on AD
An exception applies only when AD equals the valuation date VD and the input parameter
Trade Date CFs is set to TRUE, in which case the cash flows on AD contribute to both the price and income.