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The following scenarios describe ledger entries for Conversion/Buy/Receive transactions when you use asset-level expected credit loss (ECL) with a GAAP accounting basis. 

Conversion for US GAAP - AFS

On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. The lot is flagged with Regulatory Intent set to Not Likely Required to Sell, which has no accounting impact but is stored on the lot.

The ledger entries follow for a GAAP accounting basis with an AFS (Available for Sale) regulatory category. .

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-AFS

1,000


9999999992

CONVERSION COST


1,000

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

 30


1010010419

ALLOWANCE FOR ECL-AFS


 30

Conversion for US GAAP – HTM

On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. Note that Regulatory Intent is not tracked on HTM positions.

The ledger entries follow 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

1,000


9999999992

CONVERSION COST


1,000

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

 30


1010010419

ALLOWANCE FOR ECL-HTM


30 

Receive/Buy for US GAAP – AFS (Purchased Impaired Asset)

The entity purchases an impaired lot at a cost of $1,000, with expected credit loss of $30. The entry is flagged as Purchased Impaired. Note that you can only enter expected credit losses on a GAAP/AFS Receive or Buy when it is flagged as Purchased Impaired.

The ledger entries follow for a GAAP accounting basis with an AFS (Available for Sale) regulatory category. 

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-AFS

1,030


2002000100

INVESTMENT PAYABLE


1,000

1010010419

ALLOWANCE FOR ECL-AFS


 30

Receive/Buy for US GAAP – HTM

The ledger entries follow 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

1,000


2002000100

INVESTMENT PAYABLE


1,000

5001000902

IMPAIRMENT EXPENSE FOR ECL-HTM

 30


1010010419

ALLOWANCE FOR ECL-HTM


30 

Receive/Buy for US GAAP – HTM (Purchased Impaired Asset)

The entity purchases an impaired lot at a cost of $1,000, with expected credit losses of $30. The entry is flagged as Purchased Impaired.

The ledger entries follow 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

1,030


2002000100

INVESTMENT PAYABLE


1,000

1010010419

ALLOWANCE FOR ECL-HTM


30 

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