Question
BankCo holds debt securities: • Portfolio A:
Government bonds held to collect contractual interest/principal. • Portfolio B: Corporate bonds held to collect and occasionally sell to manage liquidity. • Portfolio C: Equity investments in FinTech start-up for strategic relationship. BankCo assesses Portfolio B (corporate bonds FVTOCI). Market credit spreads widened, PDs increased, though no actual default. Management wants to keep 12-month ECL citing “no actual loss.” Which treatment is correct?Solution
SICR (significant increase in credit risk) requires lifetime ECL even without default. For FVTOCI debt, impairment allowance goes to P&L with offsetting entry in OCI.
A man first travels 140 km at 70 km/hr and next 140 km at 35 km/hr. The average speed for the first 280 km of his travelling is:
Driving at 3/5 of my original speed I am 4 hours late for my office. What is my original time taken (km/h)?
The speed of a bike increases by 4 km/hr after every 1 hour. If the distance travelled by the bike in 1st hour is 30 km, the find the total distance tra...
A can complete a task in 20 days, and B can complete the same task in 25 days. If A works for 6 days and then leaves, in how many days will B complete t...
A man travelled a total distance of 400 km. He travelled first 300 km on car with a speed of 60 km/h and rest of the distance on bike whose speed is 40 ...
A bike covers a certain distance in 1.8 hours while moving at a speed of 80 km/h. Later, due to traffic, the speed decreases and it takes 2 hours to cov...
A train takes 46 seconds to cross the 214 m long bridge. If the same train takes 23 seconds to cross a signal board, tell the length of the train. (In m...
Average speed of ‘A’ during a 20-hour journey is 24 km/h. If he covered the first 320 km of his journey at a speed of 20 km/h, then find the speed a...
A person travels from point A to point B at a speed of 60 km/h and returns to point A at a speed of 80 km/h. He spends 2 hours less on the return journe...
A man is travelling at a speed of 60 km/h such that he will take 80 minutes to reach his destination. But after completing half the journey, the man too...
