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Amalgamation

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(Querist)
15 April 2010 Dear Sir/mam,

Incase Amalgamation in the nature of merger.if selling( Transferor) Company already having shares in the Purchasing( Transferee) company then what will be the Effect on Purchase Consideration...pls Clarify With Example If Possible.

THANKX IN ADVANCE
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Rasesh

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Rasesh (Expert)
16 April 2010 The crossholdings amongst the companies are cancelled and the differential value is adjusted against the reserves.

I have done it in my organisation. If you want an example, please provide me your mail id through an PM. I will send you my notes to accounts in which the adjustment is shown.
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Santhosh Poojary

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Santhosh Poojary (Querist)
18 April 2010 thanks sir
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