Pursuant to the Scheme of Arrangement (“the Demerger Scheme”) between A and B and their respective Shareholders as approved by the NCLT, which became effective in 2019 (effective date) on filing with the ROC, all assets and liabilities of the Investment division have been transferred from the (Transferor Company) to the company (Transferee company) on a going concern basis with effect from the appointed date (i.e. 1st April, 2017). However, Adjustment for Demarger Ledger is still being maintained with a debit balance. Should it be transferred to Capital Reserve? Applicable AS please.
Please guide.
Regards,
CAclubindia
