Versions Compared

Old Version 8

changes.mady.by.user Nancy Cohn (Deactivated)

Saved on

compared with

New Version Current

changes.mady.by.user Nancy Cohn (Deactivated)

Saved on

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

In the Book ECL Collective Level panel, you can manually enter collective/group-level Expected Credit Loss (ECL) transactions for securities with a processing security type of Expected Credit Loss Group (ECLGRP) when you use IFRS. You can process collective/group-level ECL for an IFRS accounting basis only when the regulatory category is Amortized Cost (AC) or Fair Value - Other Comprehensive Income (FVOCI).

You can:

  • Book ECL against at a collective/group-level for a group of domestic or foreign assets to capture all /denominated investments. The collective/group-level accountingECL for foreign denominated investments is established by local currency.

  • Book ECL against foreign assets where the accounting system properly differentiates between
    write-up and write-down increases and decreases, and accounts for them differently to properly capture variations in FX rate. Increases for foreign denominated collective/group-level ECL allowances are calculated for base amounts by applying the current FX rate.

Group

  • . For decreases for foreign denominated collective/group-level ECL allowances, the base amount is reduced by the proportional decrease in the local ECL allowance.

Collective/group-level ECL transactions are basic-specific events. These transactions/events process only on the accounting basis you specify in the panel, even in cases when the entity has more than one accounting basis. After you enter the local expected credit loss amount, the panel uses the current local-to-base exchange rate to calculate the base allowance amount for ECL transactions where the security is foreign denominated. Eagle Accounting can differentiate between a writeup ( increasing expected credit loseses lossses for a dummy asset ) and a writedown ( decreasing expected credit losses for a dummy asset) , and accounts for them differently to properly capture variations in FX rate. For more information, see Collective/Group-Level Expected Credit Loss ECL Examples for IFRS.

On this page

Table of Contents

Related content

Process ECL Transactions

with

at the

Book

Collective/Group Level

Panel

for IFRS

To process collective/group-level ECL transactions:

  1. In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Expected Credit Loss Transactions > Book ECL Collective Level.
    You see the Book ECL Collective Level panel.

An example follows.
Book Collective Level panelImage Removed

  2. In the Entity Information section, select the entity/basis for the transaction.

  3. In the Issue Information section, specify the Trade Date and Accounting Date, and select the dummy asset ID used for collective/group-level accounting.

  4. In the Credit Quality Stage Information section, select the stage in the ECL Stage box.

  5. In the Expected Credit Loss Information section, enter the Local Loss Allowance value and the Local to Base FX Rate, if the security has a foreign denomination.

  6. Complete the remaining options in the Book ECL Collective Level panel.
    For more information about each option, see the following table.

  7. Click Submit.

Book ECL Collective Level Panel Example

An example of the Book ECL Collective Level panel follows.

Image Added

Book ECL Collective Level Panel Options

The following are the options in the Book ECL Collective Level panel.

Option

Tag

Description

Entity Information

Entity ID

1163

Specifies the unique identifier of the entity.

Entity Name

1164

Specifies the name of the entity.

Accounting Basis

21

Specifies the accounting basis for the selected entity to process. You can select an accounting basis of IFRS.

NOTE:

Group

Collective/group-level ECL transactions are basic-specific events. These transactions/events process only on the accounting basis you specify in the panel, even in cases when the entity has more than one accounting basis.

Base Currency

86

Displays the base currency of the entity.

Regulatory Category

12387

Displays the regulatory category associated with International Financial Reporting Standards (IFRS) for the selected entity/accounting basis grouping. You can process collective/group-level ECL for an IFRS accounting basis only when the

accounting basis

regulatory category is Amortized Cost (AC) or Fair Value - Other Comprehensive Income (FVOCI).

Issue Information

Trade Date

35

Specifies the effective date to use for processing. The ECL effective date must be equal to the accounting date.

Accounting Date

36

Specifies the accounting date for the entity to use for processing. The accounting date must be open.

Monthly Accounting Date

4733

Displays the month end accounting date for the entity. For example, this date occurs in January.

Event Type

55

Displays the business intent of the transaction. Shows a value of ADD_ECL_GROUP.

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.

Asset Currency

85

Displays the local currency of the security.

Credit Quality Stage Information

ECL Stage

7001

Identifies the Expected Credit Loss stage. The stage tracks the credit quality status of collective/group-level financial instruments. 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.

NOTE:

Group

Collective/group-level ECL represents stage 1 and stage 2 assets only. Stage 3 assets cannot be part of a group.

Previous ECL Stage

16989

Displays the previous ECL stage during processing for the selected entity/issue criteria.

Expected Credit Loss Information

Local Loss Allowance

16990

Specifies the value of the local Expected Credit Loss allowance. This is the local expected credit loss amount.

Local to Base FX Rate

87

Displays

Specifies the foreign exchange rate used to calculate the Base Loss Allowance. This is the local to base exchange rate. You can specify a value only if you select a foreign denominated security. Otherwise, the field is locked.

Base Loss Allowance

16991

Displays the base expected credit loss amount. 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. 

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.

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.

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. 

Total ECL Base = Prev Base + Delta Base

7432

Displays the Total ECL Base value. This represents the previous value for the Base Loss Allowance plus the delta base.

Other Information

Trade Ticket Information

761

Contains the trade ticket identification number.

Transaction Notes

56

Contains user defined information about the transaction.