The collateral value Certainly use reserves that have been previously establish. Recognition of provisionslosses on productive assets is carri out at. The end of each period through an adjusting journal which is appli to each type of productive asset. Also read Example of a Fix Asset Exchange Journal and. How to Make It How to Determine the Allowance for Earning. Assets meaning of ppap Recognizing allowances for productive assets using the reserve. Method will have consequences for determining the amount of allowances. And reserves that will be present in the balance sheet and profitloss statement.
The determine the amount The collateral value
Reserves there are approaches namely Albania WhatsApp Number List Profit and loss approach In this approach what is determin first is the amount of the writeoffallowance for productive assets which will be present in the lossprofit statement while the amount of the allowance for writeoffs can be done intuitively or at a certain percentage of the remaining productive assets debit. Balance sheet approach In this approach the amount of the writeoff reserve present in the lossprofit statement is determin first. The next step is to determine the level of PPAP that must be establish.
In this case it is mandatory
Form a PPAP in the form of general reserves and Vietnam Phone Number List special reserves to cover the risk of possible losses. The reserves form from these productive assets consist of PPAP general reserves are set at at least of productive assets classifi as current excluding SBI and government debt securities. The PPAP special reserve determin is at least of productive assets classifi as special attention. of productive assets classifi as substandard after ducting. of productive assets classifi as doubtful after ducting the value of collateral. of productive assets classifi as nonperforming after ducting the value of the collateral.
