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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.
| Info |
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The following notes apply to these Sell scenarios:
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Sell for
IFRSUS GAAP –
FVOCIAFS
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 an IFRS for a GAAP accounting basis with an FVOCI (Fair Value - Other Comprehensive IncomeAFS (Available for Sale) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|
1010000100 | COST OF INVESTMENTS- |
AFS | 900 | ||
2002000100 | INVESTMENT PAYABLE | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL- |
AFS |
30 |
1010010419 | 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 |
|---|
1010000100 | COST OF INVESTMENTS- |
AFS | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 |
4004000102 | REALIZED |
20
LOSSES-AFS | 50 | |
1010010419 | ALLOWANCE FOR ECL- |
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 IFRS – AC
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 an IFRS accounting basis with an AC (Amortized Cost) regulatory category.
Ledger Account
Ledger Acct Name
Dr
Cr
1610000100
COST OF INVESTMENTS-AC
900
2002000100
INVESTMENT PAYABLE
900
5601000902
AFS | 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
5001000902 | IMPAIRMENT EXPENSE FOR ECL- |
AFS |
Ledger Account
Ledger Acct Name
Dr
Cr
1610000100
COST OF INVESTMENTS-AC
900
1002000100
INVESTMENT RECEIVABLE
850
3006000102
REALIZED LOSS ON INVESTMENTS
20
1610010419
ALLOWANCE FOR ECL-AC
30 |
1610010419
ALLOWANCE FOR ECL-AC
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.
3003000302 | UNREALIZED LOSSES - AFS - OCI | 50 | |
3006000104 | REALIZED LOSSES- AFS FROM OCI | 50 |
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 |
|---|
1010000100 | COST OF INVESTMENTS- |
AFS | 900 | |
1002000100 | INVESTMENT RECEIVABLE |
1310000100
COST OF INVESTMENTS-AFS
900
2002000100
INVESTMENT PAYABLE
900
5301000902
IMPAIRMENT EXPENSE FOR ECL-AFS
30
1310010419
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
1310000100
COST OF INVESTMENTS-AFS
900
1002000100
INVESTMENT RECEIVABLE
850
3006000102
REALIZED LOSS ON INVESTMENTS
50
950 |
3006000101
REALIZED GAIN ON INVESTMENTS
80
1610010419
ALLOWANCE FOR ECL-AC
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.
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
4004000101 | REALIZED GAINS-AFS | 50 | |
1010010419 | ALLOWANCE FOR ECL-AFS | 30 |
Ledger Account
Ledger Acct Name
Dr
Cr
1310000100
COST OF INVESTMENTS-AFS
900
1002000100
INVESTMENT RECEIVABLE
950
3006000101
REALIZED GAIN ON INVESTMENTS
50
1310010419
ALLOWANCE FOR ECL-AFS
30
5301000902
IMPAIRMENT EXPENSE FOR ECL-AFS
30
5001000902 | IMPAIRMENT EXPENSE FOR ECL-AFS | 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.
3003000301 | UNREALIZED GAINS-AFS-OCI | 50 | |
3006000103 | REALIZED GAINS-AFS FROM OCI | 50 |
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 |
|---|
1010000100 | COST OF INVESTMENTS-HTM | 900 | |
2002000100 | INVESTMENT PAYABLE | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-HTM | 30 |
1010010419 | 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 |
|---|
1010000100 | COST OF INVESTMENTS-HTM | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 |
4004000102 | REALIZED |
LOSSES-HTM | 50 |
1010010419 | ALLOWANCE FOR ECL-HTM | 30 |
5001000902 | 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 |
|---|
1010000100 | COST OF INVESTMENTS-HTM | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 950 |
4004000101 | REALIZED |
GAINS-HTM | 50 |
1010010419 | ALLOWANCE FOR ECL-HTM | 30 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-HTM | 30 |
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