In this article we will discuss about the accounting for reorganization of a company. Reorganization - Bankruptcy: Reorganization under the federal Bankruptcy Code is a way to salvage a company rather than liquidate it. Although the original owners of a company rescued in this way are often left without anything, others whose livelihoods depend on the company's fortunes may come [...]
Centuries ago in Italy the bankrupt merchant would be forced into an odd form of pillory. He would have the table he did business at in the town square broken. At least one source says the word bankruptcy derives from the Italian words for this practice, which translate to broken bench. A basic assumption of accounting is that a business [...]
In this article we will discuss about:- 1. Introduction to Buy-Back of Securities 2. Meaning of Buy-Back of Securities 3. Sources 4. Advantages. Introduction to Buy-Back of Securities: By virtue of section 77(1) of the Companies Act, 1956, a company limited by shares could not buy its own shares as the same would amount to illegal reduction of capital. This [...]