Commerce Optional (UPSC-IAS)

Today we will discuss on AS-9 Revenue Recognition relevant for UPSC Commerce Optional

👉Long-Term Repo Operation Topic related with paper 1 of commerce optional. ✅ Long-Term Repo Operation (LTRO) was introduced by the Reserve Bank in February, 2020. ✅Through this policy, the central bank would provide liquidity support to commercial banks for a period of 1 to 3 years at the current repo rate, and would accept government securities as collateral in return. Join🔜 @Commerceoptional ✅This is in contrast to the other measures it was providing such as Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) which provide cash to banks for a period of 1 to 28 days only.

Hybrid Fund A hybrid fund is one that invests in both equity and bonds. So, such funds ought to help investors with their asset allocation decision. 👆topic related with financial market and institutions Join 🔜 @Commerceoptional This refers to how you allocate your annual savings between equity and bond investments. Suppose you are unsure of the proportion of equity and bond investments to have in your portfolio. By investing in a hybrid fund, you could outsource your asset allocation decision to the manager of the fund, so the argument goes. The issue is that each goal you pursue requires different asset allocation. For instance, the asset allocation for your child's education portfolio must be different from your retirement portfolio. Hybrid funds cannot consider your individual goal requirement as it is a collective investment vehicle. Tax efficiency of the fund Based on current tax laws, a hybrid fund that holds 65% or more in equity is considered as an equity fund. So, if you redeem your units in such hybrid funds after a holding period of more than 12 months, you have to pay long-term capital gains tax of 10%. If a hybrid fund holds less than 65% in equity, you have to pay 20% capital gains tax with indexation if you sell your units after a holding period of more than 36 months.

👆Syllabus of today test paper ( timing 2PM to 5 Pm)

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Suggestions:- 1. Students are advised to write test paper within 3 hours from 2 PM to 5PM. 2. Try to attempt theory portion by writing more technical words. 3. Read practical questions carefully before solving answer. 4. Make proper format of presentation while solving practical questions. 5.Write to the point answer of theory questions with proper example. for more details. Civil Service Gurukul Team Contact at 9038389959 @csgcare

👆Syllabus of today test of UPSC Commerce Optional Mains-(2020-21)

👆Subtopics for Bonus & Right Shares, ESOP and Buyback of shares. Relevant for Paper 1 of Commerce Optional.