With Asset-Level Expected Credit Losses, Eagle’s accounting solution allows you to book expected losses at the individual lot level for debt securities held by the entity when you use a US GAAP accounting basis.
When accounting for asset-level expected credit losses, you can:
Identify an entity/basis regulatory treatment with the ECL method of US Treatment for US GAAP for use with FVOCI and AC regulatory categories.
Convert positions to add expected credit losses to the conversion event for debt security positions.
Book transactions on debt securities with expected credit losses using Receive and Buy trade panels.
Apply expected credit losses to debt security lots as an adjustment entry.
Cancel any expected credit loss adjustments entered through the Book Asset-Level panel.
Generate the appropriate accounting entries for the following types of transactions:
Conversion and Buy/Receive transactions,
Add ECL to existing lots
Sell and cancel lots associated with ECL
Paydowns associated with ECL
Impairments associated with ECL
Report on expected credit losses.
WRITERS NOTE: NEW 10/2020 Needs review
In Eagle Accounting every event has an event priority which tells the system in what order to process events when rollback replay occurs. The event priority for Asset-Level Expected Credit Loss events ensures that ECL events are processed subsequent to any open and close transactions that occur on the same trading day with the exception of Impairments. This ensures more accurate ECL processing because the calculation for ECL is typically based on the end of day position of the underlying asset. For more information, see About Event Types and Event Priorities.
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