Use Impairments with Expected Credit Losses

When you use asset-level Expected Credit Losses (ECL), you can process any impairment of the asset using the Book Impairment Adjustment panel. The impairment event checks to see if there is an expected credit loss on the lot and reduces the expected credit loss accordingly. 

Note that because you book ECL onto the system at the lot level, you must set the Impairment Processing Flag field on the panel to a value of Lot in order to reduce ECL as part of the impairment. If you set the Impairment Processing Flag to a value of Position, the system does not reduce any ECL on the lot. For additional information, see Impairments ECL Scenarios for IFRS and Impairments ECL Scenarios for US GAAP.