alleryStart learning →Which method applies to an amalgamation in the nature of purchase?
APurchase method
BProportionate method
CFair value method
DPooling of interests
Answer & Solution
Correct answer: A. Purchase method
When any merger condition fails, the deal is treated like buying assets and the purchase method is applied.
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Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?Consideration for amalgamation is the aggregate of securities issued and what else?AS 14 defines fair value as the amount for an asset exchange between whom?Statutory reserves keep their identity only when the transferee complies with what?When can amalgamation goodwill be amortised beyond five years?In the pooling method, conflicting accounting policies are handled how?In merger accounting, resultant assets, liabilities, capital and reserves roughly equal whIf a scheme departs from AS 14 on reserves, what must be disclosed?