Amalgation( absorption)

This query is : Open

Querist : Anonymous

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 ?

Rajnikant Vadigoppula

Rajnikant Vadigoppula (Expert)
Follow

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.

Message likes : 1 times

Querist : Anonymous

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 !

Online classes for CA CS CMA