The Resource When must hedge accounting be applied for Dutch income tax purposes?

When must hedge accounting be applied for Dutch income tax purposes?

Label
When must hedge accounting be applied for Dutch income tax purposes?
Title
When must hedge accounting be applied for Dutch income tax purposes?
Creator
Subject
Language
eng
Summary
Under Dutch tax law, when calculating the taxable profit, because of the principle of prudence, it is possible to take into account a loss that has not yet been realized and not to take into account a gain that not yet has been realized. This is called the "asymmetry of sound business practice". However, in some cases the principle of reality limits the application of the principle of prudence, and for tax purposes hedge accounting needs to be applied. This is the case when there is a qualitative and (sufficient) quantitative relationship between two assets/liabilities. This article considers the qualitative and quantitative tests, as well as how the Supreme Court applies those two tests
Citation source
In: Derivatives and financial instruments. - Amsterdam. - Vol. 12 (2010),
http://library.link/vocab/creatorName
  • Kok, R
  • Brouw, J. Op den
Geographic coverage
European Union
Language note
English
http://library.link/vocab/subjectName
  • case law
  • tax accounting
  • sound business practice
  • derivative financial instrument
Label
When must hedge accounting be applied for Dutch income tax purposes?
Instantiates
Publication
Label
When must hedge accounting be applied for Dutch income tax purposes?
Publication

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      52.3736660 4.9336932
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