...
The following four examples show the ledger entries that post for ECL for amortized cost and FVOCI.
Amortized
...
Acct #
...
Descr.
...
Local
Dr
Cr
...
Base
Dr
Cr
Cost with FX Rate of 1.00
Amortized Cost | ||||
|---|---|---|---|---|
Transaction 1 | ECL |
Local | FX |
Rate | ECL |
Base |
Allowance for ECL-AC
200.00
200.00
1/15/2017 | Book ECL Collective Level panel | 200.00 | 1.00 | 200.00 |
Acct # | Description | Local Dr | Cr | Base Dr | Cr |
|---|---|---|---|---|---|
1010010419 | Allowance for ECL-AC | 200.00 | 200.00 | ||
5001000902 | Impairment Expense for ECL-AC | 200.00 | 200.00 |
Fair
...
Value-OCI
...
Acct #
...
Descr.
...
Local
Dr
Cr
...
Base
Dr
...
with FX Rate of 1.00
Fair Value-OCI | ||||
|---|---|---|---|---|
Transaction 1 | ECL |
Local | FX |
Rate | ECL |
Base |
1010010419
Allowance for ECL-FV-OCI
200.00
1/15/2017 | Book ECL Collective Level panel | 200.00 | 1.00 | 200.00 |
Acct # | Description | Local Dr | Cr | Base Dr | Cr |
|---|---|---|---|---|---|
1010010419 | Allowance for ECL-FV-OCI | 200.00 | 200.00 | ||
5001000902 | Impairment Expense for ECL-FV-OCI | 200.00 | 200.00 |
Amortized
...
Cost with FX Rate of .80
Amortized Cost | ||||
|---|---|---|---|---|
Transaction 1 | ECL Local | FX Rate | ECL Base | |
1/15/2017 | Book ECL Collective Level panel | 200.00 | 0.80 | 250.00 |
Acct # |
|---|
Description | Local Dr | Cr | Base Dr | Cr |
|---|
FX
Rate
ECL
Base
1010010419
1010010419 | Allowance for ECL-AC |
200.00 | 250.00 | ||||
5001000902 | Impairment Expense for ECL-AC | 200.00 | 250.00 |
Fair Value-OCI with FX Rate of .80
Fair Value-OCI | ||||
|---|---|---|---|---|
Transaction 1 | ECL Local | FX Rate | ECL Base | |
1/15/2017 | Book ECL Collective Level panel | 200.00 | 0.80 |
5001000902
Impairment Expense for ECL-AC
200.00
250.00 |
Acct # |
|---|
Description | Local Dr | Cr | Base Dr | Cr |
|---|
ECL
Local
FX
Rate
ECL
Base
1010010419 | Allowance for ECL-FV-OCI | 200.00 | 250.00 |
1/15/2017
Book ECL Collective Level panel
200.00
0.80
250.00
5001000902 | Impairment Expense for ECL-FV-OCI | 200.00 | 250.00 |
Expected Credit Loss: Increase
...
New Local Amount 300 Current Fx Rate .75
New Base Amount 383.33 (250 + (100 ecl increase/.75) = 383.33)
...
Amortized
Cost
...
Acct #
...
Descr.
...
Local
Dr
Cr
...
Base
Dr
Cr
...
Transaction 2
...
ECL
Local
...
FX
Rate
...
Amortized Cost | ||||
|---|---|---|---|---|
Transaction 2 | ECL Local | FX Rate | ECL Base | |
2/15/2017 | Book ECL | 300.00 | 0.75 | |
ECL Prev | 200.00 | 250.00 | ||
| Increase | 100.00 | 0.75 | 133.33 | |
| Total ECL | 300.00 | 383.33 |
Acct # | Description | Local Dr | Cr | Base Dr | Cr |
|---|---|---|---|---|---|
1010010419 | Allowance for ECL-AC | (200.00) | (250.00) |
2/15/2017
Book ECL
Collective Level panel
300.00
0.75
5001000902 | Impairment Expense for ECL-AC | (200.00) | (250.00) |
ECL Prev
250.00
1010010419 | Allowance for ECL-AC | 300.00 | 383 |
. |
33 | ||||
| 5001000902 | Impairment Expense for ECL-AC | 300.00 | 383.33 |
Expected Credit Loss: Decrease
...
ECL local amount reduction = 40%. New base amount = 230 (383.33 – (.40 *383.33 previous base))
Amortized
Cost
Acct #
Descr.
Local
Dr
Cr
Base
Dr
Cr
Amortized Cost | ||||
|---|---|---|---|---|
Transaction 3 | ECL Local | FX Rate | ECL Base |
1010010419
Allowance for ECL-AC
(383.33)
3/15/2017 | Book ECL | 180.00 | none | 230.00 |
5001000902
ECL Prev | 300.00 | 383.33 | ||
Acct # | Description | Local Dr | Cr | Base Dr | Cr |
|---|---|---|---|---|---|
1010010419 | Allowance for ECL-AC | (300.00) | (383.33) |
ECL Prev
5001000902 | Impairment Expense for ECL-AC | (300.00) | (383.33) | ||
1010010419 | Allowance for ECL-AC | 180.00 | 230.00 | ||
| 5001000902 | Impairment Expense for ECL-AC | 180.00 | 230.00 |