Conversion/Buy/Receive Transactions ECL Scenarios for IFRS

The following scenarios describe ledger entries for Conversion/Buy/Receive transactions when you use asset-level expected credit loss (ECL) with an IFRS accounting basis. 

Conversion for IFRS – FVOCI

On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. The lot is flagged as Stage 1, which has no accounting impact but is stored on the lot.

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

Conversion for IFRS – Amortized Cost

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

Receive/Buy for IFRS – FVOCI

The entity purchases a lot at a cost of $1,000, with expected credit loss of $30. The lot is flagged as Stage 1, which has no accounting impact but is stored on the lot.

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

Receive/Buy for IFRS – Amortized Cost

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