Allowance for Earning Banks in their operational activities of disbursing crit are requir to form an Allowance for Productive Asset Losses PPAP from the profits they earn. But what does PPAP actually mean The formation of this PPAP is bas on the Decree of the Directors of Bank Indonesia No. KEPDIR dat November the formation or setting aside of funds is referr to as PPAP or Allowance for Productive Asset Losses. Provisions for the amount of the Allowance for Earning Asset.
Losses PPAP are also Allowance for Earning
Regulat bas on the Decree of the Malaysia Phone Number List Directors of Bank Indonesia No. KEPDIR concerning Establishment of Allowance for Losses of Productive Assets. Furthermore the formation of PPAP is bas on PBI PBI. The calculation is bas on the collectibility of current substandard doubtful and bad crit. As well as calculating the value of the collateralguarantee given by the debtor to the bank. Furthermore lets discuss what PPAP is in full and in depth in the banking accounting process in this article. Contents hide What is the meaning of PPAP.
What are the components
Productive assets PPAP method How to Malaysia WhatsApp Number List Determine the Assets Conclusion What is the meaning of PPAP PPAP is an abbreviation for allowance for losses on productive assets which is a reserve that must be form at a certain percentage of the debit balance bas on the quality classification of Productive Assets. The allowance for possible losses on productive assets PPAP functions as a reserve for anticipatory costs against losses which is plac in an asset item on the balance sheet in the financial statements. Productive assets earning assets are investments of bank funds both in rupiah and foreign currencies in the form of crit securities interbank fund placements investments including.