10 September 2010
QUESTION IS THAT WHAT ARE THE TREATMENT OF DIFFERENCE IN PURCHASE CONSIDERATION AND SHARE CAPITAL OF COMPANY TAKEN OVER IN CASE OF AMALGAMATION IN THE NATURE OF MERGER?
13 September 2010
If the purchase condition is more than the fair value of the net assets taken over in case of amalgamation in the nature of merger,the the excess balance is accounted for as Goodwill.If the same is less, then the difference is treated as Capital Reserve.
CAclubindia
