In the Book Collective Level panel, you can process group-level Expected Credit Loss (ECL) transactions for ECL securities. You can:
Book ECL against domestic or foreign assets to capture all group-level accounting.
Book ECL against foreign assets where the accounting system properly differentiates between
write-up and write-down and accounts for them differently to properly capture variations in FX rate.
To process group-level ECL transactions:
In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Expected Credit Loss Transactions > Book Collective Level.
You see the Book Collective Level panel.Complete the options in the Book Collective Level panel.
Click Submit.
Book Collective Level Panel Options
The following are the options in the Book 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. NOTE: 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 group-level ECL only when the accounting basis is Amortized Cost (AC) or Fair Value - Other Comprehensive Income (FVOCI). |
Issue Information | ||
Trade Date | 35 | Specifies the effective date to use for processing. |
Accounting Date | 36 | Specifies the accounting date for the entity to use for processing. |
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 changes to the status of credit quality of group-level financial instruments. Options include:
NOTE: 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. |
Local to Base FX Rate | 87 | |
Base Loss Allowance | 16991 | |
Expected Credit Loss Activity | ||
Prev ECL Local | 7350 | Displays |
Prev ECL Base | 7430 | Displays |
Total ECL Base = Prev Base + Delta Base | 7432 | Displays |
Other Information | ||
Trade Ticket Information | 761 | |
Transaction Notes | 56 |
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