Add ECL to Existing Lot (ECL Transition) Scenarios for US GAAP

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) with a GAAP accounting basis. 

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 ECL Asset-Level panel. The entity updates an existing lot with Expected Credit Losses of $30.

In the Book Asset-Level panel, when you set the ECL Transition option to Yes, you can flag the asset as Purchased Impaired if necessary.

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. 

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. 

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. 

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. 

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