Dear Sir Solicit your advise with respect to following query on income recognition on NPA cases. RBI norms prescribe that any unrealised income on NPA cases needs to be reversed.In case of NBFC, who is preparing INDAS financials, two possible treatments emerge. Option 1: Reverse the entire unrealised interest income on NPA's in line with RBI Master directions. Or Option 2: The entire interest income on NPA's (including unrealised) is shown as Interest Income in P&L account and corresponding ECL provision is made on interest income on NPA's. Please advise which of the above two option nbfcs should follow. Regards
While both these approach are possible we would be inclined towards opting for option 1. However, we would suggest you get to get professional opinion on the same with your consultant or reach to us at finserv@vinodkothari.com to understand further.
Sir can non deposit taking nbfc's take Inter Corporate Deposits (ICD's) from Limited Liability Partnership (LLP)
Please advise
Sir please guide
Dear Sir
Solicit your advise with respect to following query on income recognition on NPA cases.
RBI norms prescribe that any unrealised income on NPA cases needs to be reversed.In case of NBFC, who is preparing INDAS financials, two possible treatments emerge.
Option 1: Reverse the entire unrealised interest income on NPA's in line with RBI Master directions.
Or
Option 2: The entire interest income on NPA's (including unrealised) is shown as Interest Income in P&L account and corresponding ECL provision is made on interest income on NPA's.
Please advise which of the above two option nbfcs should follow.
Regards
While both these approach are possible we would be inclined towards opting for option 1.
However, we would suggest you get to get professional opinion on the same with your consultant or reach to us at finserv@vinodkothari.com to understand further.
Sir if an NBFC has assets of more than 500 crores and is in the base layer of RBI, will it be considered as SI NBFC or NSI NBFC. Please reply
The NBFC will have to comply with NBFC-NSI Master Directions. We have discussed the same in detail in Session 1 of this series.
Dear Sir
Kindly advise
Regards