i have query about mergers in banks like SBI MERGERS That if SBI have owned the debentures in their subsidiaries banks how those debentures amount get settled by SBI after MERGERS As after debetures are shown on the asset side of SBI will now shown where as whose gone to pay the amount to Sbi for that
how the accounting process and overall settlement process take place ?
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Mergers and acquisitions
Replies (4)
Quick Summary
I guess following entry will be passed :-
Debentures a/c Dr. (of the subsidiary)
To Debentures a/c ( SBI )
Debentures a/c Dr. (of the subsidiary)
To Debentures a/c ( SBI )
And pls tell HOW the amount get settled.
There won't be any settlement only above entry will be passed to eliminate asset and liabilities in their respective books,after merger the owners of SBI's subsidiary will get ownership in SBI so even if amount is settled it will be like taking money out from an owner's pocket and putting it back in owner's another pocket.
Ok thank you means only accounting entry passed for procedure not any other amount settled.
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