Ca final financial reporting

CA Final 1610 views 4 replies

hi my query is regarding nov.2008 (new course) question of amalgamation in accounts. as we know in net payment method whatever is paid to equity shareholders and preference shareholders in any form become part of purchase consideration. in institute suggested answer payment to debentureholders is also part of purchase consideration. please anyone tell me correct purchase consideration amount.thanks

Replies (4)

if it is done so it is wrong..... payment to pref share holders and equity share holders by any means is to be cosidered as purchase consideration in case of purchase method.....

For Both Method Amuont of  Purchase Consideration Will Remain Same , 

Here Purchase Consideration Means  Anything Which is to be Paid by the Purchsing Company to the Shareholders of the Vendor Company is Consider as Purchase Consideration . Payment may be made in any Form like Equity Shares, Preference Shares, Debentures, Cash or any Assets ect.

Shareholders = Equity + Preference Both 

Note:- Payment  made to Debenture holder  will not be Considered 

Hi Siddhi,

Can you please once again go through the suggested Ans of ICAI .

There is no PC working. 

Only computation of made for Preferance shres to be Issued to Debenture Holder.

Where it is mentioned that This is Total Purchase Consideration.

ICAI not mention anywhere that this is Total PC.

thanks u all for reply .ok i agree question is not asking to compute purchase consideration. but still i want to know purchase consideration because in question of amalgamation pc amount is first step. sp pls tell me pc . the ques starts with system ltd and hrd lmtd decides to amlgamate.nov 2008(new)


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