Amalgamation

ya @ Akshay bro @ abhinav is right but 4 u

I paste statementof AS14 here if any thing will not understand then ask here

If following condition satisfied then its amalgamation in the nature of merger

1) All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.

2) Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other than the equity shares already held therein, immediately before the amalgamation, by the transferee company or its subsidiaries or their nominees) become equity shareholders of the transferee company by virtue of the amalgamation.

3) The consideration for the amalgamation receivable by those equity shareholders of the transferor company who agree to become equity shareholders of the transferee company is discharged by the transferee company wholly by the issue of equity shares in thetransferee company, except that cash may be paid in respect of any fractional shares.

4) The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company.

5) No adjustment is intended to be made to the book values of the assets and liabilities of the transferor company when they are incorporated in the financial statements of the transferee company except to ensure uniformity of accounting policies.

Amalgamation in the nature of purchase is an amalgamation which does not satisfy any
one or more of the conditions specified above.

Yeah bro the difference between amalgamation in the nature of Merger & Purchase is

In the case of Merger---

1. All the assets and liabilities of transferor company will become the assets and liabilities of the transferee company.
2. Share holders holding not  less than 90% of the face value of Equity shares of the  transferor company should become the share holders of the transferee company other than the share holders already holding shares in the transferee company.
3. The purchase consideration paid to the share holders who are becoming the share holders of the transferee company will be paid only by issuing the shares of the transferee company.They will not be paid in the form of cash.
4. After amalgamation the business of the transferor company must be continued by the transferee company.
5. Not even  a single adjustment should be made in the books of the transferee company in respect of the values of the assets and liabilities.

In the case of purchase---

1. Not all the asses and liabilities will be transformed only few of them will be transferred
2. The purchase consideration will  be paid in the form of cash also
3. The adjustments will be made in respect of the values of assets and liabilities

If you find anything difficulty while solving the problems contact me

my email id:nithinraja_2008 @ yahoo.com