AMALGAMATION

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Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2009 I am sivarajan ,studying PCC.I need notes ,tips &formet in relating to company a/c -AMALGAMATION

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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12 December 2009 Practically; when you read the provisions of amalgamation; frequently two words are there:

1. Amalgamating co.- i.e. co. which will not remain after amalgamation

This co. is also known as Transferor co.

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2. Amalgamated co.- co. which absorb above company (resultant company). This will remain after amalgamation.

This co. is also known as Transferee co. and Purchasing Co.

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Abbreviate these co. as such :

First Co. A
Second Co. R

Keep these terms in your fast track memory.

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Two types of amalgamation :

1. In Nature of Merger : when satisfies all the following conditions-

1. All the assets and liabilities of Co. A goes into co. R.
2. 90% of shareholders remain same.(except shareholding of Co. R in Co. A already hold)
3. consideration is paid in equity shares to the shareholders of Co. A in Co. R
4. Same business is carried on
5. No adjustment in book value of assets and liabilities in Co. R (except some uniformity of accounting policies).

If any of five conditions are not satisfied; then it is amalgamation in nature of Purchase.

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Now read the provisions of AS-14.

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I hope you will understand the provisions.

Ca Rakhecha
Surat

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2009 Thank you very much,sir for your reply answer. I hope this intimation will be yseful to me.

THANK YOU VERY MUCH !

my mail ID (sivarajan3@in.com)

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