News Topics

What are the conditions for an amalgamation in ...

What are the conditions for an amalgamation in the nature of merger as per Accounting Standard 14 ?

What are the conditions for an amalgamation in the nature of merger as per Accounting Standard 14 ?

0
Jeeba Mar. 16, 2018

The following conditions should be fulfilled for the amalgamation in the nature of merger

(i) All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.

(ii) Shareholders holding not less than 90% of the face value of the equity shares of the transferor company become equity shareholders of the transferee company by virtue of the amalgamation.

(iii) The consideration for the amalgamation receivable by those equity shareholders of the transferor should be paid wholly by the issue of equity shares in the transferee company, except that cash may be paid in respect of any fractional shares.

(iv) The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company.

(v) No adjustment is to be made to the book values of the assets and liabilities of the transferor company except to ensure uniformity of accounting policies.

What are the conditions for an amalgamation in the nature of merger as per Accounting Standard 14 ?

Hi' there!

Would you like to receive a free callback in

Yes
×