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The following scenarios describe ledger entries for Sell transactions when you use asset-level expected credit loss (ECL) with an IFRS accounting basis.
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The following notes apply to these Sell scenarios:
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Sell for IFRS – FVOCI
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 FVOCI (Fair Value - Other Comprehensive Income) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|
1010000100 | COST OF INVESTMENTS-FV-OCI | 900 | |
2002000100 | INVESTMENT PAYABLE | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-FV-OCI | 30 |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | 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-FV-OCI | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 |
4004000102 | REALIZED |
LOSSES - FV-OCI | 20 |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | 30 | |
3003000302 | UNREALIZED LOSSES FV-OCI - OCI | 20 | |
3006000104 | REALIZED LOSSES FV-OCI FROM OCI | 20 |
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-FV-OCI | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 950 |
4004000101 | REALIZED |
GAINS - FV-OCI | 80 |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | 30 | |
3003000301 | UNREALIZED GAINS FV-OCI - OCI | 80 | |
3006000103 | REALIZED GAINS FV-OCI from OCI | 80 |
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 |
|---|
1010000100 | COST OF INVESTMENTS-AC | 900 | |
2002000100 | INVESTMENT PAYABLE | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-AC | 30 |
1010010419 | 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.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|
1010000100 | COST OF INVESTMENTS-AC | 900 | |
1002000100 | INVESTMENT RECEIVABLE | 850 |
4004000102 | REALIZED |
LOSSES-AC | 20 |
1010010419 | ALLOWANCE FOR ECL-AC | 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-AC | 900 | |
1002000100 | INVESTMENT RECEIVABLE |
950 |
4004000101 | REALIZED |
GAINS-AC | 80 |
1010010419 | ALLOWANCE FOR ECL-AC | 30 |
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