Archive | Amalgamation

Amalgamation: Meaning and Types of Amalgamation

The below mentioned article provides a study note note on the Meaning and Types of Amalgamation. Meaning of Amalgamation: In order to reap the economies of scale and to reduce or eliminate competition, two or more than two joint stock companies may combine their undertakings and becomes one joint stock company. It may be done […]

Top 2 Methods of Accounting for Amalgamation

The following points highlight the top two methods of accounting for amalgamation. The methods are: 1. Pooling of Interests Method 2. Purchase Method. 1. Pooling of Interests Method: This method is followed in case of an amalgamation in the nature of merger. Under this method, the assets, liabilities and reserves of the transferor company are […]

External Reconstruction and Amalgamation

The upcoming discussion will update you about the difference between External Reconstruction and Amalgamation. From the point of view of an accountant, external reconstruction is similar to amalgamation in the nature of purchase; the books of the transferor company are closed and in the books of the transferee company, the purchase of the business is […]

Disclosure and Consideration for Amalgamation

The below mentioned article provides a note on the Disclosure and Consideration for Amalgamation. Disclosures made for Amalgamations: For all amalgamations, the following disclosures should be made in the first financial statements following the amalgamation: (a) Names and general nature of business of the amalgamating companies; (b) Effective date of amalgamation for accounting purposes; (c) […]

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