Take over of a company

Take over of business can be done in two ways acquring shares or by acquring business

since the takeover company is a pvt ltd company AS-14 is applicable  liquidate that pvt ltd co and bring the net assets in acquired companys book record the purchase consideration difference between the two is recorded either as goodwill or capital reserve 

Thanks Sivaram.

Does purchasing a business include purchasing company's assets as well as company's share ? (In other words what is difference between purchasing shares of a company & purchasing business of acompany?

purchasing shares means  sellers shares are taken back by purchasing company and new shares of purchasing co will be issued but if a business is taken over the net assets of selling company will be taken over and the purchase consideration is discharged by any means like equity shares .pref shares ,debentures by purchasing company cash will be paid for fraction shares of selling co by purchasing co 

In case of acquiring of shares selling company remains as it is and it is not liquidated hence in such a case Holding Subsidary relationship comes into existence 

so to sum up in case of take over by shares no liquidation takes place but in case of business is taken over selling company is liquidated