CA-Final
27 Points
Joined September 2009
| Originally posted by : ruchita |
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Can anyone plz tell that The ques frm amalgamation ws to be solved by merger or purchase method???? |
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IMO it should be from merger method but some are saying that it was of purchase method. It all revolves around that debenture issue. See my logic is that there is nowhere written that if you discharge any liability after taking it up in amalgamation, at some different amount then its orignal value then it will be treated as a purchase method just for this thing.
Also since X & Y were revaluating etc before amalgamating that indicates that its a merger method.
- Just my view, answer may vary.