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The folloiwng information helps to explain group-level Expected Credit Losses (ECL).

About Tracking Stage with Group-Level ECL

With group-level ECL used in conjunction with IFRS, you can track changes related to the stage, or status of credit quality of group-level financial instruments. You identify the stage at the transaction level rather than for the SMF. These statuses include:

  • Stage 1. Have not deteriored significantly in credit quality or have low credit risk.

  • Stage 2. Deteriorated significantly in credit qualtity since initial recognition (unless low credit risk at reporting date) and not having objected evidence of impairment.

  • Stage 3. N/A (Group-level assets cannot be accounted for in Stage 3. You must perform ECL accounting for any Stage 3 assets at the asset level.)

About ECL Groupings

When you use group-level ECL, a portfolio can have multiple groupings in both stages (1 and 2) within same portfolio as well as multiple groupings within same stages. An entity portfolio can have multiple group-level ECL positions segmented by both currency and stage. Group-level ECL can represent Stage 1 and 2 assets only.

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