If liquidation expenses of transferror is borne by tranferee company,then Is same shall be added in valuation of purchase consideration?. Please give me valuable suggestion in support of your answer.
Menu
Amalgamation doubt
Replies (2)
NO MANISH LIQUIDATION EXPS R NT PART OF P.C.IF U REMEMBER THE DEFINATION OF P.C IT IS THE PAYMENT MADE TO SHAREHOLDERS OF TRANSFEROR COMPANY.
No..According to AS-14 "Accounting for Amalgamation" only payments made to the SHAREHOLDERS of the transferror company are included in the Purchase consideration..Since payment of liquidation expenses are not made to shareholders, hence it is not included in purachase consideration..
Recent Topics :
- Capital Gain on sale of Depreciated Factory Gala
- Interesting Observation from a Recent Income Tax S
- ITR 3 Utility Not Taking Marginal Relief on Net To
- MV Electrosystems IPO Allotment Date, Status Check
- TDS payment code query
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
Related Topics :
CAclubindia
