Classifi as nonperforming Banks that write off productive assets 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 Classifi as nonperforming
An reserves that will be present in Hong Kong Phone Number List the balance sheet and profitloss statement. To determine the amount of reserves there are approaches namely 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
To form a PPAP in the form of general Hong Kong WhatsApp Number List reserves and 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 the collateral value. of productive assets classifi as doubtful after ducting the value of collateral. of productive assets after ducting the value of the collateral. Also read Understanding Asset.