The folloiwng information helps to explain group-level Expected Credit Losses (ECL).
About Tracking Stages with Group-Level ECL
With group-level ECL used in conjunction with IFRS, you can track changes related to the stage, or status of credit quality of group-level financial instruments. You identify the stage at the transaction level rather than for the SMF. These statuses include:
Stage 1. Have not deteriored significantly in credit quality or have low credit risk.
Stage 2. Deteriorated significantly in credit qualtity since initial recognition (unless low credit risk at reporting date) and not having objected evidence of impairment.
Stage 3. N/A (Group-level assets cannot be accounted for in Stage 3. You must perform ECL accounting for any Stage 3 assets at the asset level.)
About ECL Groupings
When you use group-level ECL, a portfolio can have multiple groupings in both stages (1 and 2) within same portfolio as well as multiple groupings within same stages. An entity portfolio can have multiple group-level ECL positions segmented by both currency and stage. Group-level ECL can represent Stage 1 and 2 assets only.
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