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The following scenarios describe ledger entries for adding ECL to an existing lot if you enable the ECL Transition option when you use asset-level expected credit loss (ECL). 

The entity is transitioning to the current expected credit loss model and the credit loss entry is flagged as a Transition, that is, ECL Transition = Y on the Book Asset-Level panel. The entity updates an existing lot with Expected Credit Losses of $30.

WRITERS NOTE: Do we need to explicitly explain that selecting ECL Transition option allows you to select the Purchased Impaired option? That you can choose it for first time only when you adopt, or whatever we say on Book Asset-Level page?  

Book Asset-Level Transition for IFRS - FVOCI

The ledger entries follow for an IFRS accounting basis with an FVOCI (Fair Value - Other Comprehensive Income) regulatory category. 

Ledger Account

Ledger Acct Name

Dr

Cr

1310000100

COST OF INVESTMENTS-FV-OCI

1,000


9999999992

CONVERSION COST


1,000

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

30 


3003000151

ACCUMULATED ALLOWANCE FOR ECL - OCI


 30

Book Asset-Level Transition for IFRS – Amortized Cost

The ledger entries follow for an IFRS accounting basis with an AC (Amortized Cost) regulatory category. 

Ledger Account

Ledger Acct Name

Dr

Cr

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

30 


1610010419

ALLOWANCE FOR ECL-AC


 30

Book Asset-Level Transition for US GAAP – AFS

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

Ledger Account

Ledger Acct Name

Dr

Cr

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

 30


1310010419

ALLOWANCE FOR ECL-AFS


 30

Book Asset-Level Transition for US GAAP – AFS (Purchased Impaired Asset)

This scenario follows the same transition as in the prior scenario for US GAAP - AFS, but the entry 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

1310000100

COST OF INVESTMENTS-AFS

30


1310010419

ALLOWANCE FOR ECL-AFS


 30

Book Asset-Level Transition 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

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

 30


1510010419

ALLOWANCE FOR ECL-HTM


30 


Book Asset-Level Transition for US GAAP – HTM (Purchased Impaired Asset)

This scenario follows the same transition as in the prior scenario for US GAAP with HTM, but 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

1310000100

COST OF INVESTMENTS-HTM

30


1510010419

ALLOWANCE FOR ECL-HTM


 30

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