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.
Eagle Accounting can differentiate between a writeup (increasing expected credit loseses 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.
Process Transactions with the Book Collective Level Panel
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. An example follows.
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 the credit quality status 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. This is the local expected credit loss amount. |
Local to Base FX Rate | 87 | Displays the foreign exchange rate used to calculate the Base Loss Allowance. This is the local to base exchange rate. |
Base Loss Allowance | 16991 | 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. |
Prev ECL Base | 7430 | Displays the previous value for the Base Loss Allowance. |
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. WRITERS NOTE: more info needed? |
Other Information | ||
Trade Ticket Information | 761 | Contains the trade ticket identification number. |
Transaction Notes | 56 | Contains user defined information about the transaction. |
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