To convert a position for expected credit losses when you use IFRS:
In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.In the Search Details pane, select your search criteria.
In the results grid, click a security.
Do one of the following to select the transaction activity:
- On the Book Trade tab, in the Actions group, click Action Rules, point to the transaction type of Other, and then click Conversion.
- Right-click the security row, point to Other, and then click Conversion.
You see the Conversion of Position to Eagle STAR panel.Enter the entity, issue, and trade information for the position.
Enter the Conversion Information Local options that apply to conversion transactions that reflect asset-level Expected Credit Losses for fixed income positions that are Long. For a position with Non-US Treatment (IFRS basis), you can:
- Specify the Purchased Impaired value.
- Specify the Expected Credit Loss Local value.
- Specify the Expected Credit Loss Stage value.If the security has a foreign demonination, in the Conversion Information Base section, you can specify the Expected Credit Loss Base value.
Complete the remaining information in the transaction entry panel.
On the Form tab, in the Validation group, click Validate and validate the transaction data.
Click Submit to submit the transaction for processing.
For conversion transactions on IFRS accounting bases, Eagle accounting rules and posting matrix post ECL ledger entries to Accumulated Undistributed Income and Accumulated Allowance For ECL. For conversion transactions on US GAAP accounting bases, Eagle accounting rules and posting matrix post ECL ledger entries to Cost Of Investments and Accumulated Allowance For ECL.
Conversion of Position to Eagle STAR Panel Options for Expected Credit Loss
The Conversion of Position to Eagle STAR panel includes the following fields specific to fixed income positions associated with Expected Credit Loss. Note that options may vary according to your selections.
Option | Tag | Description |
---|---|---|
Conversion Information Local | ||
Purchased Impaired | 16999 | Indicates whether the position is credit impaired. This field appears only for long fixed income positions that have an ECL Method field value of either Non-US Treatment with regulatory categories of FVOCI/AC or US Treatment with regulatory categories of AFS/HTM. Options include:
|
Expected Credit Loss Local | 16990 | Specifies the value of the local Expected Credit Loss allowance. If you specify a value, you must additionally specify a value for the Regulatory Intent field or the Expected Credit Loss Stage field. This field appears only for long fixed income positions that have an ECL Method field value of US Treatment with regulatory categories of AFS/HTM. |
Regulatory Intent | 2921 | Indicates the regulatory intent for positions that have a regulatory category of AFS (Available for Sale). This field appears only for long fixed income positions that have an ECL Method field value of US Treatment with a regulatory category of AFS. Options include:
|
Expected Credit Loss Stage | 7100 | Identifies the Expected Credit Loss stage. The stage tracks the credit quality status of financial instruments. You must specify a value if you enter a value for the Expected Credit Loss Local field or if you set the Purchased Impaired option to Yes. This field appears only for long fixed income positions that have an ECL Method field value of Non-US Treatment with regulatory categories of FVOCI/AC. Options include:
|
Conversion Information Base | ||
Expected Credit Loss Base | 16991 | Specifies the value of the base Expected Credit Loss allowance. This value can differ from the Expected Credit Loss Local value for ECL transactions where the security is foreign denominated. You can specify a value only for for ECL transactions where the security is foreign denominated. WRITERS NOTE: confirm that system does not calculate this for you based on the local to base FX rate and you can enter the value only for foreign securities. |
Panel Example for IFRS - FVOCI/AC
A sample panel follows for the ECL method of Non-US Treatment, for IFRS accounting basis with an FVOCI ((Fair Value - Other Comprehensive Income)) or AC (Amortized Cost) regulatory category.
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