Calculaion of PC

no, according to AS 14 only paymnt made to shareholders is considered in PC.

WHILE CALCULATING PURCHASE CONSIDERATION,THE PROVISION OF AS-14 TO BE TAKEN INTO CONSIDERATION WHICH SAYS..........................->

(A) ONLY PAYMENT TO SHARE HOLDERS ARE TO BE TAKEN INTO CONSIDERATION

(B) CONSIDERATION FOR DEBENTURE HOLDERS WILL NOT BE INCLUDED IN PURCHASE CONSIDERATION

(C) LIQIDATION EXPENSES OR PAYMENT FOR COST OF ABSORPTION ARE NOT INCLUDED IN PURCHASE CONSIDERATION

                                     ALL THE BEST   

Logically, Purcahse considerations is the Payment made to the Owners in the form of Cash, Shares Etc  So Here Liquidation exp is not he Part of PC at all.  

Dear Liquidation exps wont form part of purchase consideration as per AS-14.Just go through AS-14 , you will come to know that PC consists of what?

Any further query please ask.........

The payments made to the members ( ESH and PSH) of the vendor company alone shall form part of PC. Settlement to debentureholders, creditors etc. & towards liquidation expenses by the purchasing company, are not to be recorded in the books of vendor company. This is para 3(g) of AS 14.

THANK U TO ALL OF U......