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Illustration 38
AFM
answered on 08-Mar-26 19:53
Sir, I have a doubt regarding the determination of the optimum replacement period. Why is the cost of the new machine not considered as a factor in this decision? I believe that if the cost of the new machine remains the same across all years, it should also be taken into account while determining the optimum replacement time. Could you please clarify this point?
latest answer
If some is common across all years would you not eliminate it? When finding out eac we are trying to compare opex and not capex as capex is common
Mhd Mmp
CA Final
★ 585
1
57
Net Owned Fund and Non-Performing Asset
Auditing
answered on 17-Mar-26 10:15
As per the glide path prescribed by the Reserve Bank of India, the minimum Net Owned Fund (NOF) requirement for an Investment and Credit Company is ₹2 crore currently, which must increase to ₹10 crore by March 2025 and remain ₹10 crore by March 2026. For the May 2026 examination, should we check whether the ICC has more than ₹2 crore or ₹5 crore NOF for obtaining the Certificate of Registration (CoR) from RBI? Further, for classification of Non-Performing Assets (NPA) in middle-layer NBFCs, should the overdue period be calculated as 180 days or as per the glide path requirement of 90 days by March 2026?
latest answer
For May 2026, the final regulatory norms post glide path are applicable. Accordingly, (i) Minimum NOF for ICC = ₹10 crore, and (ii) NPA classification = 90 days overdue.
Shinisha Rose R
CA Final
★ 5K+
1
92
Registration with RBI
Auditing
answered on 20-Apr-26 18:59
A company’s principal business is financial activity as it satisfies the 50-50 test, i.e., financial assets constitute more than 50% of its total assets (net of intangible assets) and income from financial assets constitutes more than 50% of its gross income. However, the company’s Net Owned Fund (NOF) is less than ₹2 crore. In this case, is the company required or eligible to obtain registration as a Non-Banking Financial Company (NBFC) from the Reserve Bank of India?
latest answer
👍
Shinisha Rose R
CA Final
★ 5K+
3
85
Illustration no 4
AFM
answered on 08-Mar-26 15:36
In the first line of the solution its mentioned as P Ltd will go on LONG. How to identify whether its long or short position. [Video Time Stamp: 39:18]
latest answer
FRA long
Vidyashree Anand
CA Final
★ 0
1
48
Amount of Residual Value Guarantee to be considered in Liability
Financial Reporting
answered on 15-Mar-26 21:32
In this illustration, only 8000 has been considered even though the guarantee is for 20000. Why do we not consider the full 20000 for liability measurement? the estimate of owing 8000 is just an estimate, would it not be prudent to consider the whole 20000? [Video Time Stamp: 07:22]
latest answer
I Expect exam questions to be more clearer.
Vishnu Muraleedharan
CA Final
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3
62
forward rate
AFM
answered on 08-Mar-26 15:32
u said in the question that they given 5 different government securities with 5 different coupon rates so each one is different from others then why did we take YTM of first security as base in order to get forward rate for second year for second security which is having different coupon rate Do we need to consider all the 5 different government securities as one security in order to find foward rates for each year ??? [Video Time Stamp: 00:54]
latest answer
Zero curve / bootstrappping
Hemanth kumar Kapuluru
CA Final
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43
Illus 26
AFM
answered on 07-Mar-26 19:44
Is this way of solving correct, sir [Video Time Stamp: 13:06]
latest answer
If answer is same then correct only
Swathi S
CA Final
★ 975
1
44
MTP 2018
Financial Reporting
answered on 09-Mar-26 11:36
Sir, could you please explain SCENARIO 2 from the question - I did not understand the logic of why we are not considering the land as HFS, even when a purchase commitment has been made - does that not tantamount to the sale itself?
latest answer
It is not in a saleable condition and its known to the entity.
Vasudha TK
CFA L1
★ 70
1
44
Reason why profit remains same under delivery based transaction and net cash settlement
AFM
answered on 07-Mar-26 16:20
1 .Delivery based transaction - Arbitrage method: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Receive proceeds of Rs. Y by delivering the share Profit/loss = Rs. Y - Future value of Rs. X 2. Net Cash Settlement: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Close the futures by net cash settlement (i.e. Rs. Y minus spot price as on expiry date = Gain/loss on FC) Expiry Date - Sell off the shares in cash market at spot price (i.e. Spot price minus Future value of Rs. X = gain/loss on sell of shares) If we see these 2 gains in together mathematically, spot price gets eliminated and finally the Gain/loss = Rs. Y - Future value of Rs. X. Am I correct, sir? [Video Time Stamp: 11:54]
latest answer
Yes
Swathi S
CA Final
★ 975
1
52
Doubt Regarding Order of Writing Answers in CA Exams
Exams
answered on 08-Mar-26 12:12
Sir, I have a small doubt regarding the CA exam answer writing pattern. I understand that we can answer questions in a different order, but should it be question-wise (e.g., completing Q2 with all its subparts and then moving to another question), or is it okay to shuffle subparts like writing 2(a), then 4(b), etc.?
latest answer
Thanks for the clarification.
I'm Banu
CA Final
★ 0
3
120