05 June 2011
help me to solve the given problem Service Means providing Yoga treatment Q. B Ltd take over the chain or Network business of A which is a trust are managed by the directors of B Ltd . Terms are , B Ltd agreed to take over the entire network of the business that has been made by the trust , by providing the service to the members of that chain or give a right to convert the benefit into contribution towards share capital of a tune of 50% of the amount paid by them. how it will be accounted according to GAAps and ACS ?
06 June 2011
You will require following valuation. 1- Share Valuation to be transfered at what rate at Par or with premium. 2-Valuation of Business for Purchase Consideration. 3-Valuation of Fixed Assets to recognise assets in the books after take over and look the impairement if any. 4- Shareholder agreement Other activities are also required better to hire a good CA firm for this
06 June 2011
thank u sir. but these are the steps adopted when the entire business ( including Fixed Assets),in this specific case the business is carried by the trust are network business of ayurvedic treatment. for eg if a person taking coupon of Rs.5 will get treatment. In this case the said company taking over that chain of business of trust and nothing else.
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