AS 14

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There are two main methods of amalgamations :

     Pooling d int. method &Purchase method

1st one is used in the nature of merger & 2nd one in the case of purchase of co.

My question is can't we interchange them vice-versa??

Pls rply

Thank u

Replies (15)

Din't get the question................plz elaborate

What you want to interchange? For Pooling of interst method certain conditions are to be satisfied if they dont get satisfied then it will be regarded as purchase method.... plz elaborate ur question

No it will be in violation of AS-14 if you interchange and use the method other than precribed by the AS under such cirumstances i.e Merger method should be followed only when 5 conditions mentioned in AS-14 prescribed are followed otherwise purchse method should be followed.

No, you have to aply AS-14 which says pooling of int method is to be applied only for Amalgmation in the nature of Marger

No u r violating AS 14

My dear, one of these two methods will be applied at the time of amalgamation only. Once amalgamated, there is no possibility of applying the other method. So, interchange is not possible. 

Regards, CA Shakuntala Chhangani

All AS at one place  

https://www.caclubindia.com/forum/all-as-at-one-place-87927.asp  

As per purchase method books are incorporated from the date of acquisition while in case of accounts are prepared as if mergered entity is from the begining, so treatment will be changed if another method is used.

Dear hemal, ur answer is not clear. will u pl. clarify ur viewpoint???

As per merger method accounts are prepared from the date of merger itself i.e. reserves and profit and loss are merged from the date of merger while in purchase method all the balances except statutory reserves are corporated from the begining of the financial year.

My dear, where hv u read that??? It is nowhere mentioned in AS 14.

But respected mam u can find it from AS 20.

Hey, AS 20 is calculation of EPS and not amalgamation.

I know tht but accounting for amalgamtion is done in such a manner. In one method we transffered all the account balance in the books of transferee including all the reserves etc. including statutory reserves also. That means even profit or loss to the date we are transfering but in anther we are not tranfering reserves except statutory reserves. This is the same thing as define in AS 14.

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