Add ECL to Existing Lot (ECL Transition) Scenarios

The following scenarios describe ledger entries for adding ECL to an existing lot if you enable the ECL Transition option when you use asset-level expected credit loss (ECL). 

The entity is transitioning to the current expected credit loss model and the credit loss entry is flagged as a Transition, that is, ECL Transition = Y on the Book Asset-Level panel. The entity updates an existing lot with Expected Credit Losses of $30.

WRITERS NOTE: Do we need to explicitly explain that selecting ECL Transition option allows you to select the Purchased Impaired option? That you can choose it for first time only when you adopt, or whatever we say on Book Asset-Level page?  

Book Asset-Level Transition for IFRS - FVOCI

The ledger entries follow for an IFRS accounting basis with an FVOCI (Fair Value - Other Comprehensive Income) regulatory category. 

Book Asset-Level Transition for IFRS – Amortized Cost

The ledger entries follow for an IFRS accounting basis with an AC (Amortized Cost) regulatory category. 

Book Asset-Level Transition for US GAAP – AFS

The ledger entries follow for a GAAP accounting basis with an AFS (Available for Sale) regulatory category. 

Book Asset-Level Transition for US GAAP – AFS (Purchased Impaired Asset)

This scenario follows the same transition as in the prior scenario for US GAAP - AFS, but the entry is flagged as Purchased Impaired.

The ledger entries follow for a GAAP accounting basis with an AFS (Available for Sale) regulatory category. 

Book Asset-Level Transition for US GAAP – HTM

The ledger entries follow for a GAAP accounting basis with an HTM (Held to Maturity) regulatory category. 

Book Asset-Level Transition for US GAAP – HTM (Purchased Impaired Asset)

This scenario follows the same transition as in the prior scenario for US GAAP with HTM, but the entry is flagged as Purchased Impaired.

The ledger entries follow for a GAAP accounting basis with an HTM (Held to Maturity) regulatory category.