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 [...]
In this article we will discuss about:- 1. Meaning of Amalgamation 2. Definition of Amalgamation 3. Amalgamation and Absorption 4. Objectives 5. Comparative Position of Types of Amalgamations. Meaning of Amalgamation: Amalgamation is a form of combination. Amalgamation is a blending of two or more existing undertaking into one undertaking, the shareholders of each blending company becoming substantially the shareholders [...]
The following points highlight the two main types of amalgamation of a company. The types are:- 1. Amalgamation in the Nature of Merger 2. Amalgamation in the Nature of Purchase. Type # 1. Amalgamation in the Nature of Merger: An amalgamation in the nature of merger should, according to the Accounting Standard - 14, satisfy the following conditions: 1. All [...]