Manage Asset-Level ECL for US GAAP

Owned by Nancy Cohn (Deactivated)
Last updated: Mar 08, 2021
1 min read

With Asset-Level Expected Credit Losses (ECL), Eagle’s accounting solution allows you to book expected losses at the individual lot level for debt securities held by the entity when you use a US GAAP accounting basis.

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

  • Identify an entity/basis regulatory treatment with the ECL method of US Treatment for US GAAP for use with AFS (Available for Sale) or HTM (Held to Maturity) 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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