In the Book Asset-Level panel, you can apply expected credit losses (ECL) to debt security lots as an adjustment entry. To apply an expected credit loss adjustment to a lot, the lot must have an accounting basis with the ECL Method set to:
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In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Expected Credit Loss Transactions > Book Asset-Level.
You see the Book Asset-Level panel.In the Entity Information section, specify the entity and accounting basis associated with the lot you are adjusting.
In the Security Information by Option section, identify the security associated with the lot you are adjusting.
In the Accounting Information section, identify the lot you are adjusting and date criteria. If you set ECL Transition to Yes, you have the option to the change the Purchased Impaired value for your initial transaction.
The options available vary if you are adjusting a lot that uses Non-US Treatment with regulatory categories of FVOCI/AC or a lot that uses US Treatment with regulatory categories of AFS/HTM.If you adjust a lot using Non-US Treatment ECL Method with a regulatory category of FVOCI/AC, you can update the Credit Quality Stage Information fields.
If you adjust a lot using US Treatment ECL Method (GAAP) with a regulatory category of AFS, you can update the Regulatory Intent Information fields and the Non-Credit Loss Information fields.
This allows you to book non-credit loss adjustments for AFS securities that have a regulatory intent of Not LIkely Required to Sell.Under Expected Credit Loss Information, specify the expected credit loss allowance.
Complete the remaining options on remaining options on the Book Asset-Level panel.
Click Submit.
After you make a lot adjustment, you can view the adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool.
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Book Asset-Level Panel Options
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Option | Tag | Description |
|---|---|---|
Entity Information | ||
Entity ID | 1163 | Specifies the unique identifier of the entity. |
Entity Name | 1164 | Specifies the abbreviated name of the entity. |
Accounting Basis | 21 | Specifies the accounting basis. The system can apply expected credit losses to lots with an Accounting Basis of IFRS or GAAP. |
Base Currency | 86 | Displays the base currency of the entity. |
Regulatory Category | 12387 | Displays the regulatory category associated with International Financial Reporting Standards (IFRS) associated with the selected entity/accounting basis. You can apply expected credit losses to lots with regulatory categories of:
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ECL Method | 18053 | Displays the method that the system uses to process asset-level expected credit losses for the selected entity/accounting basis associated with the lot, as follows:
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Security Information | ||
Event Type | 55 | Displays the type of event. For example, ADJ_ECL_ASSET. |
Cross Reference Type | 1234 | Specifies the cross reference type associated with the security. |
Cross Reference ID | 1233 | Specifies the cross reference identifier associated with the security. |
Issue Name | 961 | Specifies the name of the security. |
Instrument Type | 11 | Displays the security's investment type. For example, FI (fixed income). |
Asset Currency | 85 | Displays the currency in which the security is priced. |
Accounting Information | ||
Choose Open Lot | 962 | Allows you to select an open lot for asset-level ECL processing. The lookup displays a list of open lots that met your criteria. |
Acquisition Date | 216 | Displays the original acquisition date for the selected open lot. |
Effective Date | 35 | Specifies the effective date as of which the expected credit loss transaction is applied. The effective date cannot be greater than the accounting date. You must specify a date less than or equal to the current date. The current date is the default value. |
Accounting Date | 36 | Specifies the date the transaction is reported. The accounting date must be greater than or equal to the effective date. The current date is the default value. |
Settlement Date | 37 | Displays the date the trade is settled. |
Target Event ID | 26 | Displays the target event ID type. |
Trade Quantity | 159 | Displays the quantity of the open adjustment event. |
Unit Price | 160 | Specifies the price of the security per unit. |
Local Current Cost | 128 | Displays the current identified cost basis in local currency. |
Base Current Cost | 129 | Displays the current identified cost basis in base currency. |
Purchased Impaired | 16999 | Specifies whether the displayed lot is credit impaired. Options include No and Yes. This option is available only if you set ECL Transition to Yes. Otherwise, the field is locked. |
ECL Transition | 18075 | Indicates whether you are entering a lot adjustment transaction during the period where existing Eagle Accounting clients are adopting ECL functionality for the first time, and need the ability to change the Purchased Impaired status. Options include:
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Credit Quality Stage Information | ||
ECL Stage | 7001 | Identifies the Expected Credit Loss stage. The stage tracks the credit quality status of financial instruments. This field appears only for long fixed income lots that have an ECL Method field value of Non-US Treatment (IFRS) with regulatory categories of FVOCI/AC. Options include:
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Previous ECL Stage | 16989 | Displays the previous ECL stage during processing for the selected lot criteria. This field appears only for long fixed income lots that have an ECL Method field value of Non-US Treatment with regulatory categories of FVOCI/AC. |
Regulatory Intent Information | ||
Regulatory Intent | 2921 | Indicates the regulatory intent for lots that have a regulatory category of AFS (Available for Sale). Options include:
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Previous Regulatory Intent | 18046 | Displays the previous Regulatory Intent value during processing for the selected lot criteria. This field appears if you select a lot with a Regulatory Category of AFS. |
Expected Credit Loss Information | ||
Local Loss Allowance | 16990 | Specifies the value of the local Expected Credit Loss allowance. If the lot has a regulatory category of AFS (Available for Sale) and you set the Regulatory Intent to a value of Intent to Sell or Likely Required to Sell, you cannot specify a value for this field. If the lot has a regulatory category of AFS (Available for Sale) and you set the Regulatory Intent to a value of Not Likely Required to Sell, you can specify a value for this field. |
Local to Base FX Rate | 87 | Displays the foreign exchange rate used to calculate the Base Loss Allowance. This is the local to base exchange rate. |
Base Loss Allowance | 16991 | Specifies the value of the base Expected Credit Loss allowance. The system uses the current local-to-base exchange rate to calculate the base allowance amount for ECL transactions where the security is foreign denominated. |
Expected Credit Loss Activity | ||
Prev ECL Local | 7350 | Displays the previous value for the Local Loss Allowance. When you update the current balance or stage, the system moves the current value to this previous field to store the prior value. |
Prev ECL Base | 7430 | Displays the previous value for the Base Loss Allowance. |
ECL Delta Local | 7351 | Displays the local ECL delta value. WRITERS NOTE: determine conditions when these 4 last fields appear. Non US Treatment? Foreign? Writeup? Writedown? |
Local to Base FX Rate | 7961 | Displays the foreign exchange rate used to calculate the ECL Delta Base. This is the local to base exchange rate. |
ECL Delta Base | 7431 | Displays the value of the base ECL delta. The system uses the current local-to-base exchange rate to calculate the base delta amount for ECL transactions where the security is foreign denominated. |
Total ECL Base = Prev Base + Delta Base | 7432 | Displays the Total ECL Base value. This represents the previous value for the Base Loss Allowance plus the delta base. |
Non-Credit Loss Information | ||
Prev Non-Credit Loss Local | 2702 | Displays the lot’s previous Non-Credit Loss Local amount. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS, WRITERS NOTE: You use with for regulatory intent of Not Likely Required to Sell. Is field access likely by that other field selection? SDP-16535 |
Prev Non-Credit Loss Base | 2703 | Displays the lot’s previous Non-Credit Loss Base amount. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS, |
Non-Credit Loss Local | 2704 | Specifies the lot’s non-credit loss adjustment amount in local currency. You can specify a positive amount of zero or greater. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS, |
Non-Credit Loss Base | 2705 | Displays the lot’s non-credit loss adjustment amount in base currency. The system uses the current local-to-base exchange rate to calculate the base non-credit loss amount for transactions where the security is foreign denominated. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS, |
Other Information | ||
Trade Ticket Number | 761 | Specifies the origin of the trade ticket number. |
Transaction Notes | 56 | Specifies the comments about the transaction. |
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