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Amalagamtion

This query is : Resolved 
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(Querist)
18 April 2017 Post merger or purchase, the unrealized profit on stock held by vendor co. as on the date of merger or purchase be derecognized in which of the the following cases
1) Vendor holding stock purchased from purchasing company
2) When two companies amalgamate and form a new company
In 2 nd case it should be derecognized , but in 1 st case whether it should be derecognized or not?
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CA Gopal Somani

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CA Gopal Somani (Expert)
19 April 2017 In First case it is not reversed.

For for details you can check Amalgamation video created by me.

https://youtu.be/ouSL6sRa4vs?list=PLjemDd6cjImDWEsKTgF6OtUZhVOXzoMCI
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chaitanyaraj

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chaitanyaraj (Querist)
19 April 2017 Thank you sir for your clarification
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