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The following scenarios describe ledger entries for Conversion/Buy/Receive transactions when you use asset-level expected credit loss (ECL) with a GAAP accounting basis. 

Conversion for

US GAAP - AFS

On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. The lot is flagged as Stage 1with Regulatory Intent set to Not Likely Required to Sell, which has no accounting impact but is stored on the lot.

The ledger entries follow for an IFRS a GAAP accounting basis with an FVOCI (Fair Value - Other Comprehensive IncomeAFS (Available for Sale) regulatory category. .

Conversion for

US GAAP – HTM

On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. Note that Regulatory Intent is not tracked on HTM positions.

The ledger entries follow for an IFRS a GAAP accounting basis with an AC (Amortized CostHTM (Held to Maturity) regulatory category. 

Receive/Buy for US GAAP

– AFS

(Purchased Impaired Asset)

The entity purchases an impaired lot at a cost of $1,000, with established expected credit losses loss of $30. The lot is flagged with Regulatory Intent  set to Not Likely Required to Sell, which has no accounting impact but is stored on the lotentry is flagged as Purchased Impaired. Note that you can only enter expected credit losses on a GAAP/AFS Receive or Buy when it is flagged as Purchased Impaired.

The ledger entries follow for a GAAP accounting basis with an AFS (Available for Sale) regulatory category. . 

Receive/Buy for US GAAP –

On 1 January 2020, an entity converts a lot at a cost of $1,000, and the converted lot is recognized as Purchased Impaired, that is, Purchased Impaired election on conversion = Yes. You input an expected credit loss amount of $30, which impacts the Amortized Cost of the lot.

HTM

The ledger entries follow for a GAAP accounting basis with an AFS (Available for SaleHTM (Held to Maturity) regulatory category. 

Receive/Buy for US GAAP – HTM

(Purchased Impaired Asset)

The entity purchases an impaired lot at a cost of $1,000, with established expected credit losses of $30. Note that Regulatory Intent is not tracked on HTM positionsThe entry is flagged as Purchased Impaired.

The ledger entries follow for a GAAP accounting basis with an HTM (Held to Maturity) regulatory category.