Question

One of the effects of the particular global economic crisis in Indonesia is the decline in...

One of the effects of the particular global economic crisis in Indonesia is the decline in the value of the Rupiah against the US dollar. As a result, many companies in Indonesia experienced Derivative Losses. This happens because there are differences in exchange rates in the recording. Sometimes to keep the fluctuation of this derivative transaction many companies hedge their fair value assets or liabilities. In addition, it turns out that derivative transactions can also be used for speculative purposes, where derivative transactions for speculative purposes are intended solely to maximize profits and not in order to protect the company's assets or liabilities. With regard to taxation, the question is whether derivative losses for speculative purposes can be charged as a deduction from PFM?

Subject : Taxation Management And Strategy

Homework Answers

Answer #1

Loss to a bank from derivative transactions ,measured cumulatively over a particular current year ,must not exceed 10% of bank capital.The maximum 10% limit on loss to a bank shall be waived in the case of loss from derivative transactions not set off against gain from non derivative transactions directly linked to the derivative transactions concerned.

In the event that the loss of the bank exceeds 10% of bank capital the bank shall be prohibited from conducting new derivatives transactions and shall report the measures to be taken to recover the loss to bank Indonesia by no later than the following working day.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT