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.

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-FV-OCI

1,000

 

9999999992

CONVERSION COST

 

1,000

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

30 

 

3003000151

ACCUMULATED ALLOWANCE FOR ECL - OCI

 

 30

Conversion for IFRS – Amortized Cost

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

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-AC

1,000

 

9999999992

CONVERSION COST

 

1,000

3003000100

ACCUMULATED UNDISTRIBUTED INCOME(LOSS)

30 

 

1010010419

ALLOWANCE FOR ECL-AC

 

 30

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. 

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-FV-OCI

1,000

 

2002000100

INVESTMENT PAYABLE

 

1,000

5001000902

IMPAIRMENT EXPENSE FOR ECL-FV-OCI

30 

 

3005000406

ALLOWANCE FOR ECL-FV-OCI

 

 30

Receive/Buy for IFRS – Amortized Cost

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

Ledger Account

Ledger Acct Name

Dr

Cr

1010000100

COST OF INVESTMENTS-AC

1,000

 

2002000100

INVESTMENT PAYABLE

 

1,000

5001000902

IMPAIRMENT EXPENSE FOR ECL-AC

30 

 

1010010419

ALLOWANCE FOR ECL-AC

 

 30

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