Doubt

i think Because those reserves will be distributed to the share holders of the vendor company before amalgamation..and statutory reserve should be maintained as per the rules so it is being recorded..

agree with Sasanka Bhalaki

I agree with Sasanka Bhalaki answer.

Think like chartered accountant you will get your answer. dont think like only accountant...

any way.... the name of method itself gives u answer " Purchase"

Just like if you went to shop and purchasing the item you want. Same manner amalgamation in the nature of purchase in which u r buying asset n liabilities that u want.  Talking about reserve there is no hard n fast rule that those reserve compulsory to be distributed to vending shareholder, if the deal is like that reserve to be transferred then it should be transferred to purchasing company.

One short there is no compulsion that reserve to be distributed to vendor shareholder it can be transferred to purchasing company.

Regds,

Samir Shaikh

thankyou freinds