Hi frnds!
Pls tell me the concept of this question-In case A&B gets amalgamated into new Co. C Ltd...and there exists inter Co. Investment among A&B ...then while computing Purchase Consideration(of lets say A in our Eg) on the basis of intrinsic value of their shares....We find Net Assets Taken Over by A(lets say)then we reduce it by market value of shares of A HELD BY B....Why do we reduce it??Whats the concept??(pls refer 2006 Final question in Accounts Compiler ...its taken from there)
I got confused bcoz in case where A Ltd absorbs B ltd then while computing P.C of B -from Net assets Taken Over we reduce MARKET VALUE OF SHARES HELD BY B in A Ltd..
Why there is such difference...Anyone pls help me!!
CAclubindia
