Commodity-and-Energy-Risk-Management.pdf

Management defined tax strategies ruling and opinion

Info icon This preview shows pages 8–10. Sign up to view the full content.

View Full Document Right Arrow Icon
management defined tax strategies Ruling and Opinion Support Submit tax position and analysis on behalf of the company to solicit a local ruling Provide a tax opinion based on KPMG’s analysis Tax Analysis and Research Research and report global tax law updates and significant rulings that affect commodity businesses Analyse potential tax impact and remediation strategies considering new or evolving tax legislation Tax Incentives Advisory Review the business plan and activities and advise the incentive(s) best suited for the company to consider. Propose refinement of the company’s business plan to enhance the likelihood of a successful incentive application. Assist the company in incentive application and negotiation strategy formulation. Assist the company to put in place appropriate internal controls and procedures to monitor the progress in implementing their proposed business plan and complying with the terms and conditions of the incentive award(s). Tax requirements associated with commodity activities are complex, unique to specific national jurisdictions, and susceptible to change. Without sufficient up-front consideration for and deep knowledge of relevant tax considerations, a routine or seemingly advantageous transaction can create significant financial risk and compliance costs. Given the significant exposure and the onerous operational requirements associated with issue or transactional analysis, leading organisations are turning to external support with deep geographic resources and specialisation. S T R A T E G Y C O N C E P T I M P L E M E N T A T I O N Commodity & Energy Risk Management Model Development, Validation & Remediation Operations Tax Accounting Regulatory Internal Audit Forensics & Investigations Governance, Roles & Policies Hedging & Risk Strategy Credit & Collections Risk Reporting & Management Information Systems 8 | Commodity and Energy Risk Management
Image of page 8

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Accounting KPMG Service Activities Accounting Implementation Assist management to develop processes for the application of new or revised accounting pronouncements Assist management to perform an impact analysis and evaluate alternative implementation activities, as applicable Assist management to identify business and functional requirements, perform current state gap analysis, and prioritise implementation recommendations Hedge Accounting and Technology Support Review and summarise existing derivative positions Categorise derivatives as explicit or embedded options in accordance with SFAS 133 and IAS39 guidance Identify alternative methods applied by industry participants to calculate and evaluate hedge effectiveness (e.g. dollar offset, regression, etc.) Establish models and related assumptions to calculate hedge effectiveness Establish models to calculate proxy transactions as appropriate Support derivative accounting system selection and business and functional requirements definition
Image of page 9
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern