Amalgation( absorption)

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 March 2012 in case of amalagamation in the nature of MERGER ..whether we should deduct provision for dividend from total assets while calculating intrinsic value ?

21 March 2012 no,it should not be deducted from assets. proposed dividend is not a liability to outsider. it is distribution of profit earned.

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 March 2012 thank you sir,in opinion too it shouldn't be.

but in a solution to a question it is deducted..and B/s after MERGER matches !!

i think solution is wrong !


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