A vintage disclosure organizes specified amortized-cost assets and credit information by year of origination or another required cohort structure. It helps readers compare credit patterns across cohorts, but origination year alone does not explain those patterns.
Control the cohort assignment
Define origination year, asset class, current-period originations, renewals, extensions, modifications, acquisitions, sales, and writeoffs. Reconcile every row and column to the covered amortized-cost population. State the reporting date and units.
Suppose a class totals $12 million but its vintage rows total $11.6 million. The $0.4 million difference needs an identified route, such as current-period originations or modified loans. It cannot remain an unexplained “other” item. Confirm that current-period gross writeoffs use the required structure and period.
Interpret with limits
A newer cohort with more delinquencies may reflect underwriting, economic conditions, seasoning, product mix, or reporting changes. Compare defined credit-quality indicators and cohort movement before stating a cause. Avoid presenting a cohort as certain to collect or default.
Boundary and source
Vintage is one part of the credit-loss note. It does not replace the allowance rollforward, policy, or credit-quality disclosures. Read ASC 326-20-50-6 for the year-of-origination structure and its relation to credit-quality information.
Put the concept to work
Understand this concept
- Explain origination-year, asset-class, current-period activity, writeoff, renewal or extension, and transition boundaries in a vintage disclosure.
Analyze this concept
- Reconcile a supplied vintage table to class totals and interpret cohorts without treating origination year as proof of underwriting quality or causation.
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Build on these ideas
- Receivables and credit-loss disclosure — Understand
To understand this concept: Required. Vintage is one structured credit-risk disclosure, not the entire note.
- Vintage disclosure — Understand
To analyze this concept: Required. Interpretation follows the table's population and transition structure.
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Use this idea next
- Vintage disclosure — Analyze
Required level here: understand. Required. Interpretation follows the table's population and transition structure.