Page Comparison

1. Likely Required to Sell.

1. Complete the remaining options on the Book ECL Asset-Level panel, as needed.
   For more information about each option, see the following table.

2. Click Submit. 

The following table describes these options in detail. After you make a lot adjustment, you can view the adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool. Any subsequent ECL transactions to the same ECL position insert an adjustment row in order to update the balance or other information. When you update the current balance or regulatory intent, the system moves the current value to a “previous” field on the adjustment row in order to store the prior value.

??? Review prior paragraph. do we need an example?

Book

ECL

Book Asset-Level Panel Options

In the Book Asset-Level panel, you can apply expected credit losses (ECL) to debt security lots as an adjustment entry. Note that options may vary according to your selections. The options available on the panel vary if you are adjusting a lot that uses Non-US Treatment with regulatory categories of FVOCI/AC or a lot that uses US Treatment with regulatory categories of AFS/HTM.

Option

Tag

Description

Entity Information

Entity ID

1163

Specifies the unique identifier of the entity.

Entity Name

1164

Specifies the abbreviated name of the entity.

Accounting Basis

21

Specifies the accounting basis. The system can apply expected credit losses to lots with an Accounting Basis of IFRS or GAAP.

Base Currency

86

Displays the base currency of the entity.

Regulatory Category

12387

Displays the regulatory category associated with International Financial Reporting Standards (IFRS) associated with the selected entity/accounting basis. You can apply expected credit losses to lots with regulatory categories of:

• FVOCI/AC that have an ECL Method of Non-US Treatment. This applies to IFRS bases.

• AFS/HTM that have an ECL Method of US Treatment. This applies to GAAP bases.

ECL Method

18053

Displays the method that the system uses to process asset-level expected credit losses for the selected entity/accounting basis associated with the lot, as follows:

• Non-US Treament. Identifies the accounting basis that follows IFRS regulatory treatments for Expected Credit Losses.

• US Treatment. Identifies the accounting basis that follows US GAAP regulatory treatments for Expected Credit Losses.

Security Information

Event Type

55

Displays the type of event. For example, ADJ_ECL_ASSET.

Cross Reference Type

1234

Specifies the cross reference type associated with the security.

Cross Reference ID

1233

Specifies the cross reference identifier associated with the security.

Issue Name

961

Specifies the name of the security.

Instrument Type

11

Displays the security's investment type. For example, FI (fixed income).

Asset Currency

85

Displays the currency in which the security is priced.

Maturity Date

38

Displays the date the final principal payment is due on the security.

Coupon Rate

70

Displays the rate at which the security accrues interest. It is expressed as an annual rate.

Accounting Information

Choose Open Lot 

962

Allows you to select an open lot for asset-level ECL processing. The lookup displays a list of open lots that met your criteria. Each row shows Event, Trade Date, Acquisition Date values.

Acquisition Date

216

Displays the original acquisition date for the selected open lot.

Effective Date

35

Specifies the effective date as of which the expected credit loss transaction is applied. The effective date cannot be greater than the accounting date. You must specify a date less than or equal to the current date. The current date is the default value.

Accounting Date

36

Specifies the date the transaction is reported. The accounting date must be greater than or equal to the effective date. The current date is the default value.

Settlement Date

37

Displays the date the trade is settled.

Target Event ID

26

Displays the target event ID type.

Trade Quantity

159

Displays the quantity of the open adjustment event.

Unit Price

160

Specifies the price of the security per unit.

Local Current Cost

128

Displays the current identified cost basis in local currency.

Base Current Cost

129

Displays the current identified cost basis in base currency.

Purchased Impaired

16999

Specifies whether the displayed lot is credit impaired. Options include No and Yes. This option is available only if you set ECL Transition to Yes. Otherwise, the field is locked.

ECL Transition

18075

Indicates whether you are entering a lot adjustment transaction during the period where existing Eagle Accounting clients are adopting ECL functionality for the first time, and need the ability to change the Purchased Impaired status. Options include:

• Yes. Identifies the initial expected credit loss transaction entered on the lot. When you select Yes, the Purchased Impaired field becomes available. If necessary, you can update a lot with a previously purchased impaired status of No to Yes. For all subsequent transactions on the lot, the ECL Transition election is set to No and the Purchased Impaired election is locked.

• No. Does not identify the initial expected credit loss transaction entered on the lot. The Purchased Impaired election is locked.

Credit Quality Stage Information

ECL Stage

7001

Identifies the Expected Credit Loss stage. The stage tracks the credit quality status of financial instruments. This field appears only for long fixed income lots that have an ECL Method field value of Non-US Treatment (IFRS) with regulatory categories of FVOCI/AC. Options include:

• Stage 1. Have not deteriorated significantly in credit quality or have low credit risk.

• Stage 2. Deteriorated significantly in credit quality since initial recognition (unless low credit risk at reporting date) and not having objective evidence of impairment.

• Stage 3. The system assigns this value if you set Purchased Impaired to Yes.

Previous ECL Stage

16989

Displays the previous ECL stage during processing for the selected lot criteria. This field appears only for long fixed income lots that have an ECL Method field value of Non-US Treatment with regulatory categories of FVOCI/AC.

Regulatory Intent Information

Regulatory Intent

2921

Indicates the regulatory intent for lots that have a regulatory category of AFS (Available for Sale). Options include:

• Intent to Sell. If you select this value, you cannot specify a value for the Local Loss Allowance field. However, you can submit the event to update the intent status on the lot. If you update the status to Intent to Sell, the system reverses/backs out any current expected credit losses on the lot.

• Likely Required to Sell. If you select this value, you cannot specify a value for the Local Loss Allowance field. However, you can submit the event to update the intent status on the lot. If you update the status to Likely Required to Sell, the system reverses/backs out any current expected credit losses on the lot.

• Not Likely Required to Sell. Default. If you select this value, you can specify a value for the Local Loss Allowance field to enter an expected credit loss amount.

Previous Regulatory Intent

18046

Displays the previous Regulatory Intent value during processing for the selected lot criteria. This field appears if you select a lot with a Regulatory Category of AFS.

Expected Credit Loss Information

Local Loss Allowance

16990

Specifies the value of the local Expected Credit Loss allowance.

If the lot has a regulatory category of AFS (Available for Sale) and you set the Regulatory Intent to a value of Intent to Sell or Likely Required to Sell, you cannot specify a value for this field. If the lot has a regulatory category of AFS (Available for Sale) and you set the Regulatory Intent to a value of Not Likely Required to Sell, you can specify a value for this field.

Local to Base FX Rate

87

Specifies the foreign exchange rate used to calculate the Base Loss Allowance. This is the local to base exchange rate. If you do not select a foreign denomination, this field is unavailable.

WRITERS NOTE: is it ever editable and when? does it display only under certain conditions?

Base Loss Allowance

16991

Specifies the value of the base Expected Credit Loss allowance. The system uses the current local-to-base exchange rate to calculate the base allowance amount for ECL transactions where the security is foreign denominated. If you do not select a foreign denomination, this field is unavailable.

WRITERS NOTE: only appears for ECL Transition FX ? confirm conditions when this field appears

Expected Credit Loss Activity

Prev ECL Local

7350

Displays the previous value for the Local Loss Allowance. When you update the current balance or stage, the system moves the current value to this previous field to store the prior value.

Prev ECL Base

7430

Displays the previous value for the Base Loss Allowance.

ECL Delta Local

7351

Displays the local ECL delta value.

WRITERS NOTE: determine conditions when these 3 fields appear. Non US Treatment? Foreign?

Local to Base FX Rate

7961

Displays the foreign exchange rate used to calculate the ECL Delta Base. This is the local to base exchange rate.

WRITERS NOTE: determine conditions when these 3 fields appear. Non US Treatment? Foreign?

ECL Delta Base

7431

Displays the value of the base ECL delta. The system uses the current local-to-base exchange rate to calculate the base delta amount for ECL transactions where the security is foreign denominated. 

WRITERS NOTE: determine conditions when these 3 fields appear. Non US Treatment? Foreign?

Total ECL Base = Prev Base + Delta Base

7432

Displays the Total ECL Base value. This represents the Prev ECL Base field previous value for the Base Loss Allowance plus the EC: De;ta Base field delta base.

Non-Credit Loss Information

Prev Non-Credit Loss Local

2702

Displays the lot’s previous Non-Credit Loss Local amount. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS when you set the Regulatory Intent to a value of Not Likely Required to Sell.

WRITERS NOTE: confirm conditions when this section appears

Prev Non-Credit Loss Base

2703

Displays the lot’s previous Non-Credit Loss Base amount. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS when you set the Regulatory Intent to a value of Not Likely Required to Sell.

Non-Credit Loss Local

2704

Specifies the lot’s non-credit loss adjustment amount in local currency. You can specify a positive amount of zero or greater. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS when you set the Regulatory Intent to a value of Not Likely Required to Sell.

Non-Credit Loss Base

2705

Displays the lot’s non-credit loss adjustment amount in base currency. The system uses the current local-to-base exchange rate to calculate the base non-credit loss amount for transactions where the security is foreign denominated. This field appears for lots with a US Treatment ECL Method (GAAP) with a regulatory category of AFS when you set the Regulatory Intent to a value of Not Likely Required to Sell.

Other Information

Trade Ticket Number

761

Specifies the origin of the trade ticket number.

Transaction Notes

56

Specifies the comments about the transaction.

Sample Panel US GAAP

Asset-Level Panel Example for US GAAP

In the following figure, you use the Book ECL Asset-Asset Level panel with an entity/basis for GAAP, where the ECL Method is US Treatment and the Regulatory Category is AFS (Available for Sale). Under Regulatory Intent Information, notice that you set Regulatory Intent to Not Likely Required to Sell.

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Sample Panel IFRS

In the following figure, you use the Book-Asset Level panel with an entity/basis for IFRS, where the ECL Method is Non-US Treatment and the Regulatory Category is AC (Amortized Cost). Under Credit Quality Stage Information, notice that you set ECL Stage to Stage 2.

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Book ECL Asset-Level Panel Options