To convert a position for expected credit losses:
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 and Base options that apply to conversion transactions that reflect asset-level Expected Credit Losses for fixed income positions that are Long.
For a position with US Treament (GAAP basis), you can specify the Purchased Impaired, Expected Credit Loss Local, and and Regulatory Intent values. For a position with Non-US Treatment (IFRS basis), you can specify the Purchased Impaired, Expected Credit Loss Local, and the Expected Credit Loss Stage values. The following table describes these options.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.
The Conversion of Position to Eagle STAR panel includes the following fields specific to fixed income positions associated with Expected Credit Loss.
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 regulatory categories of AFS/HTM. Options include:
WRITERS NOTE: This field is hidden onscreen and I cannot select a value when unhidden? |
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. WRITERS NOTE: The panel does not appear to calculate this for you based on tag 87 as it does on other panels |
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