Archive | Amalgamation

Amalgamation, Absorption and Reconstruction | Accounting

Here is a compilation of top five accounting problems on amalgamation, absorption and reconstruction with its relevant solutions. Illustration 1:   The Balance Sheet of Z Ltd. and A ltd. as on September 30, 2006 are given below: A Ltd. propose to take over Z Ltd. on the following terms: (1) A Ltd. will issue a sufficient number of its [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Amalgamation|Comments Off on Amalgamation, Absorption and Reconstruction | Accounting

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 recorded. But otherwise external reconstruction [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Amalgamation|Comments Off on External Reconstruction and Amalgamation

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) The method of accounting used [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Amalgamation|Comments Off on Disclosure and Consideration for Amalgamation
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