View Asset-Level ECL Positions for US GAAP
- Nancy Cohn (Deactivated)
The Book ECL Asset-Level panel creates an adjustment row in the Cost object for the ECL balance and stage that you can view and track in Position Viewer. Any subsequent transactions to the same ECL position insert an adjustment row in order to update the balance. When you update the current balance, the system moves the current value to a “previous” field on the adjustment row in order to store the prior value.
In the following example, you use the Book ECL Asset-Level panel to enter a transaction for $8,000.00 ECL. Then you view the position in Position Viewer.
Transactions for GAAP/AFS portfolios must include a Regulatory Intent election. The default election is Not Likely Required to Sell.
In Position Viewer’s Cost Position tab, you can see the $8,000.00 ECL entry. See the following figure.
In Position Viewer’s Open Adjustments tab, you can view open adjustments for the $8,000.00 ECL entry. See the following figure.
In the sample transaction, you now change the ECL to $11,000. The new ECL is $11,000.00. The $8,000.00 value moves to the previous (Prev) fields. See the following figure. In Position Viewer’s Open Adjustments tab, you can see the second row with a value of $11,000 and a previous value of $8.000.