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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.

The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Lot with expected credit losses of $30 applied:

Ledger Account

Ledger Acct Name

Dr

Cr

1310000100

COST OF INVESTMENTS-FV-OCI

900

2002000100

INVESTMENT PAYABLE

900

5301000902

IMPAIRMENT EXPENSE FOR ECL-FV-OCI

30

3305000406

ALLOWANCE FOR ECL-FV-OCI

 30

Excusing any subsequent amortization, the lot is fully sold for $850 with the same amortized cost of $900. The following transaction should occur:

Ledger Account

Ledger Acct Name

Dr

Cr

1310000100

COST OF INVESTMENTS-FV-OCI

 900

1002000100

INVESTMENT RECEIVABLE

 850

3006000102

REALIZED LOSS ON INVESTMENTS - FV-OCI

20

3305000406

ALLOWANCE FOR ECL-FV-OCI

30

Ledger Account

Ledger Acct Name

Dr

Cr

1310000100

COST OF INVESTMENTS-FV-OCI

 900

1002000100

INVESTMENT RECEIVABLE

 950

3006000101

REALIZED GAIN ON INVESTMENTS - FV-OCI

80

3305000406

ALLOWANCE FOR ECL-FV-OCI

30

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.Lot

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. 

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.

20

1610000100

COST OF INVESTMENTS-AC

 900

1002000100

INVESTMENT RECEIVABLE

 850

3006000101

REALIZED GAIN ON INVESTMENTS

80

1610010419

ALLOWANCE FOR ECL-AC

30

The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Lot with expected credit losses of $30 applied:

Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900. The following transaction should occur:

Ledger Account

Ledger Acct Name

Dr

Cr

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.

Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900. The following transaction should occur:

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. 

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.

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.

• The above Sell examples illustrate what should occur for a full sell.
• For a partial sell across multiple lots, the expected credit losses will be reduced proportional to the portion sold.
• The close lot should reflect the ECL Stage of the targeted open.
• Position-level ECL will be reduced accordingly.