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The following scenarios describe ledger entries for Sell transactions when you use asset-level expected credit loss (ECL) with a GAAP accounting basis.
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The following notes apply to these Sell scenarios:
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Sell for US GAAP – AFS
The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Ledger entries follow for a lot with expected credit losses of $30 applied for a GAAP accounting basis with an AFS (Available for Sale) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
13100001001010000100 | COST OF INVESTMENTS-AFS | 900 | |
2002000100 | INVESTMENT PAYABLE | 900 | |
5301000902 | IMPAIRMENT EXPENSE FOR ECL-AFS | 30 | |
13100104191010010419 | ALLOWANCE FOR ECL-AFS | 30 |
Sell with Realized Loss
Excusing any subsequent amortization, the lot is fully sold for $850 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
13100001001010000100 | COST OF INVESTMENTS-AFS | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 | |
30060001024004000102 | REALIZED LOSS ON INVESTMENTSLOSSES-AFS | 50 | |
13100104191010010419 | ALLOWANCE FOR ECL-AFS | 30 | |
53010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-AFS | 30 | |
| 3003000302 | UNREALIZED LOSSES - AFS - OCI | ?? | |
| 3006000104 | REALIZED LOSSES- AFS FROM OCI | ?? |
Sell with Realized Gain
Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
13100001001010000100 | COST OF INVESTMENTS-AFS | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 950 | |
30060001014004000101 | REALIZED GAIN ON INVESTMENTSGAINS-AFS | 50 | |
13100104191010010419 | ALLOWANCE FOR ECL-AFS | 30 | |
53010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-AFS | 30 | |
| 3003000301 | UNREALIZED GAINS-AFS-OCI | ?? | |
| 3006000103 | REALIZED GAINS-AFS FROM OCI | ?? |
Sell for US GAAP – HTM
The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Ledger entries follow for a lot with expected credit losses of $30 applied for a GAAP accounting basis with an HTM (Held to Maturity) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
13100001001010000100 | COST OF INVESTMENTS-HTM | 900 | |
2002000100 | INVESTMENT PAYABLE | 900 | |
55010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-HTM | 30 | |
15100104191010010419 | ALLOWANCE FOR ECL-HTM | 30 |
Sell with Realized Loss
Excusing any subsequent amortization, the lot is fully sold for $850 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
15100001001010000100 | COST OF INVESTMENTS-HTM | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 | |
30060001024004000102 | REALIZED LOSS ON INVESTMENTSLOSSES-HTM | 50 | |
15100104191010010419 | ALLOWANCE FOR ECL-HTM | 30 | |
55010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-HTM | 30 |
Sell with Realized Gain
Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
15100001001010000100 | COST OF INVESTMENTS-HTM | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 950 | |
3006000101 | REALIZED GAIN ON INVESTMENTS | 50 | |
15100104191010010419 | ALLOWANCE FOR ECL-HTM | 30 | |
55010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-HTM | 30 |
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