As 14
This query is : Resolved
05 June 2017
In case of Amalgamation in the nature of merger what should be the treatment for Security premium lying in the books of Transferor company. Whether it will be added to the security premium of the Transferee company or will it be adjusted with the reserves of the Transferee company?
05 June 2017
It will be added in reserves of Transferee Co.
07 June 2017
Thanks for your prompt reply Ma'm.
As per AS 14 - The identity of the reserves shall continue to exist in books of the transferee company as they appear in books of the transferor whether it is a capital reserve, statutory reserve, general reserve, revaluation reserve.
Regarding Share Capital - The difference between the amount recorded as share capital issued (plus any additional consideration in the form of cash or other assets) and the amount of share capital of the transferor company is adjusted in Reserves in the financial statements of the transferee company.
So my Query is whether to Treat Security Premium as a reserve or should it be treated as Share capital.
As per AS 14 - The identity of the reserves shall continue to exist in books of the transferee company as they appear in books of the transferor whether it is a capital reserve, statutory reserve, general reserve, revaluation reserve.
Regarding Share Capital - The difference between the amount recorded as share capital issued (plus any additional consideration in the form of cash or other assets) and the amount of share capital of the transferor company is adjusted in Reserves in the financial statements of the transferee company.
So my Query is whether to Treat Security Premium as a reserve or should it be treated as Share capital.
07 June 2017
It is treated as reserve not share capital.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- Taxation on Old jewellery sold
- ITR 44AD SECTION
- Query regarding reporting of exempt foreign remuneration in ITR
- PF wage ceiling
- Error in uploading Form 10BD
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
