Manage Asset-Level ECL for IFRS

Owned by Nancy Cohn (Deactivated)
Last updated: Mar 11, 2021
1 min read

With Asset-Level Expected Credit Losses (ECL), Eagle’s accounting solution extends its Collective/Group-Level Expected Credit Losses capabilities and allows you to book expected losses at the individual lot level for debt securities held by the entity when you use an IFRS accounting basis.

When accounting for asset-level expected credit losses, you can:

  • Identify an entity/basis regulatory treatment with the ECL method of: Non-US Treatment for IFRS for use with AC (Amortized Cost) or FVOCI (Fair Value - Other Comprehensive Income) 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.

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