The folloiwng information helps to explain group-level Expected Credit Losses (ECL).
About the Stage, or Credit Quality Status
With group-level ECL, you can track changes related to the status of credit quality of group-level financial instruments. You identify the stage at the transaction level rather than for the SMF. These statuses include:
Stage 1. Have not deteriored significantly in credit quality or have low credit risk.
Stage 2. Deteriorated significantly in credit qualtity since initial recognition (unless low credit risk at reporting date) and not having objected evidence of impairment.
Stage 3. N/A (Group-level assets cannot be accounted for in Stage 3. You must perform ECL accounting for any Stage 3 assets at the asset level.)
About Groupings
When you use group-level ECL, a portfolio can have multiple groupings in both stages (1 and 2) within same portfolio as well as multiple groupings within same stages. An entity portfolio can have multiple group-level ECL positions segmented by both currency and stage. Group-level ECL can represent Stage 1 and 2 assets only.
About Ledger Accounts for Posting ECL Transactions
The following ledger accounts were added to the STAR chart of accounts to allow you to post the various types of ECL transactions:
1010010419 ALLOWANCE FOR ECL
1010010421 CURRENCY GAIN ALLOWANCE ECL
1010010422 CURRENCY LOSS ALLOWANCE ECL
3003000151 ACCUMULATED ALLOWANCE FOR ECL OCI
3003000309 ACCUMULATED UNREALIZED CURRENCY GAIN/LOSS ECL OCI
3005000406 ALLOWANCE FOR ECL OCI
3303000307 UNREALIZED CURRENCY GAIN ALLOWANCE ECL OCI
3303000308 UNREALIZED CURRENCY LOSS ALLOWANCE ECL OCI
4004000404 UNREALIZED CURRENCY GAIN ECL INCOME
4004000405 UNREALIZED CURRENCY LOSS ECL INCOME
5001000902 IMPAIRMENT EXPENSE FOR ECL