Plant and machinery allowances and Repo-to-maturity: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
(Categorise.)
 
Line 1: Line 1:
(PMAs). ''UK Tax.''  
''Off balance sheet risk - repurchase agreements''.
An annual tax allowance given to a business in respect of capital allowances for its qualifying capital expenditure on machinery and similar qualifying items.
 
(RTM).
 
A repo-to-maturity transaction is a repurchase agreement in which the transferred securities (usually government bonds) mature on the same date the repurchase agreement ends.
 
 
<span style="color:#4B0082">'''''Obligation and underlying risk not reported'''''</span>
 
:"Through the use of RTM transactions borrowers were able to present deals on their balance sheet as sales due to the fact that the assets wold not be recovered before they matured
 
:The obligation to repurchase these securities was therefore not recorded and the underlying risk was not apparent on the balance sheet."
 
:''The Treasurer, October 2018, p30 - Christopher Howarth, group CFO, Falcon Group.''


PMAs are an example of Writing down allowances.


== See also ==
== See also ==
* [[Writing down allowance]]
* [[Balance sheet]]
* [[Contingent liabilities]]
* [[IFRS 16]]
* [[Liquidity risk]]
* [[Off balance sheet risk]]
* [[Repurchase agreement]]
* [[Security]]


[[Category:Identify_and_assess_risks]]
[[Category:Risk_reporting]]

Revision as of 16:31, 6 October 2018

Off balance sheet risk - repurchase agreements.

(RTM).

A repo-to-maturity transaction is a repurchase agreement in which the transferred securities (usually government bonds) mature on the same date the repurchase agreement ends.


Obligation and underlying risk not reported

"Through the use of RTM transactions borrowers were able to present deals on their balance sheet as sales due to the fact that the assets wold not be recovered before they matured
The obligation to repurchase these securities was therefore not recorded and the underlying risk was not apparent on the balance sheet."
The Treasurer, October 2018, p30 - Christopher Howarth, group CFO, Falcon Group.


See also