Sell Transactions ECL Scenarios for IFRS
- Nancy Cohn (Deactivated)
The following scenarios describe ledger entries for Sell transactions when you use asset-level expected credit loss (ECL) with an IFRS accounting basis.
The following notes apply to these Sell scenarios:
These Sell examples illustrate what should occur for a full sell.
For a partial sell across multiple lots, the expected credit losses are reduced proportional to the portion sold.
The close lot should reflect the ECL Stage of the targeted open.
Position-level ECL is reduced accordingly.
Sell for IFRS – FVOCI
The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Ledger entries follow for a lot with expected credit losses of $30 applied for an IFRS accounting basis with an FVOCI (Fair Value - Other Comprehensive Income) regulatory category.Â
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-FV-OCI | 900 | Â |
2002000100 | INVESTMENT PAYABLE | Â | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-FV-OCI | 30 | Â |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | Â | Â 30 |
Sell with Realized Loss
Excusing any subsequent amortization, the lot is fully sold for $850 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-FV-OCI | Â | Â 900 |
1002000100 | INVESTMENT RECEIVABLE | Â 850 | Â |
4004000102 | REALIZED LOSSES - FV-OCI | 20 | Â |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | 30 | Â |
3003000302 | UNREALIZED LOSSES FV-OCI - OCI | 20 | Â |
3006000104Â Â Â | REALIZED LOSSES FV-OCI FROM OCIÂ Â | Â | 20 |
Sell with Realized Gain
Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-FV-OCI | Â | Â 900 |
1002000100 | INVESTMENT RECEIVABLE | Â 950 | Â |
4004000101 | REALIZED GAINS - FV-OCI | Â | 80 |
3005000406 | ALLOWANCE FOR ECL-FV-OCI | 30 | Â |
3003000301 | UNREALIZED GAINS FV-OCI - OCI | Â | 80 |
3006000103 | REALIZED GAINS FV-OCI from OCIÂ Â | 80 | Â |
Sell for IFRS – AC
The entity holds an asset, par of 1,000 and a cost of $900, and expected credit losses of $30 applied to it.
Ledger entries follow for a lot with expected credit losses of $30 applied for an IFRS accounting basis with an AC (Amortized Cost) regulatory category.Â
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-AC | 900 | Â |
2002000100 | INVESTMENT PAYABLE | Â | 900 |
5001000902 | IMPAIRMENT EXPENSE FOR ECL-AC | 30Â | Â |
1010010419 | ALLOWANCE FOR ECL-AC | Â | Â 30 |
Sell with Realized Loss
Excusing any subsequent amortization, the lot is fully sold for $850 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-AC | Â | Â 900 |
1002000100 | INVESTMENT RECEIVABLE | Â 850 | Â |
4004000102 | REALIZED LOSSES-AC | 20 | Â |
1010010419 | ALLOWANCE FOR ECL-AC | 30 | Â |
Sell with Realized Gain
Excusing any subsequent amortization, the lot is fully sold for $950 with the same amortized cost of $900.
The following transaction occurs.
Ledger Account | Ledger Acct Name | Dr | Cr |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS-AC | Â | Â 900 |
1002000100 | INVESTMENT RECEIVABLE | Â 950 | Â |
4004000101 | REALIZED GAINS-AC | Â | 80 |
1010010419 | ALLOWANCE FOR ECL-AC | 30 | Â |
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