About Expected Credit Losses
- Nancy Cohn (Deactivated)
This section introduces some general concepts and terminology used with Expected Credit Losses (ECL).
About Collective/Group-Level Expected Credit Losses
With Collective/Group-Level Expected Credit Losses, also called collective-level ECL or group-level ECL, Eagle’s accounting solution can support Expected Credit Losses grouping functionality for either IFRS or US GAAP accounting bases. Expected Credit Losses grouping functionality involves the creation of a dummy asset using the processing security type, ECLGRP, which represents a group of assets/individual securities held by a portfolio for which expected credit losses exist. Collective/group-level ECL provides a way for an entity to account for expected credit losses within its portfolio without having to book those expected losses to securities actually held by the entity at the lot level.
For detailed information, see Manage Collective/Group-Level ECL for IFRS and Manage Collective/Group-Level ECL for US GAAP.
About Asset-Level Expected Credit Losses
With Asset-Level Expected Credit Losses, Eagle’s accounting solution can support Expected Credit Losses functionality for either IFRS or US GAAP accounting bases. When you use Asset-Level ECL, Eagle’s accounting solution allows you to book expected losses at the individual lot level for debt securities held by the entity.
For detailed information, see Manage Asset-Level ECL for IFRS and .
About Ledger Accounts for Posting ECL Transactions
The following ledger accounts were added to the STAR chart of accounts to allow you to post the various types of ECL transactions:
1010010419 ALLOWANCE FOR ECL
1010010421 CURRENCY GAIN ALLOWANCE ECL
1010010422 CURRENCY LOSS ALLOWANCE ECL
3003000151 ACCUMULATED ALLOWANCE FOR ECL OCI
3003000309 ACCUMULATED UNREALIZED CURRENCY GAIN/LOSS ECL OCI
3005000406 ALLOWANCE FOR ECL OCI
3303000307 UNREALIZED CURRENCY GAIN ALLOWANCE ECL OCI
3303000308 UNREALIZED CURRENCY LOSS ALLOWANCE ECL OCI
4004000404 UNREALIZED CURRENCY GAIN ECL INCOME
4004000405 UNREALIZED CURRENCY LOSS ECL INCOME
5001000902 IMPAIRMENT EXPENSE FOR ECL
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