Menu
Amalgamation
In pooling of interest method why difference between the amount recorded as share capital issued and the amount of share capital of transferor company is adjusted in reserves
Replies (2)
Share capital is worth of a company. Anything paid below the worth of a co is a profit / surplus for you. hence such diff is capitalised by transfering it to R&S ( jus like surplus in p&l is transfered to r&s). And anything paid more than the worth of the company is a loss. hence we reduce that amount from reserves or create goodwill
Tnq for ur reply, but can u clarify that we do adjust from whose reserves transferor or transferee?
Recent Topic
- Provident fund taxation
- ITR3 AY 26-27 Error in filling status
- Queries on TDS as per IT
- Capital Gains set off on Sale of Land if held for
- ITR Form for income from freelance consultancy
- Gst rate for HSN code 28530010
- Health Insurance
- India GST Mobile App
- Reporting STCG on non equity oriented MF
- Section 54F exemption for buying a plot
Related Topics
CAclubindia
