alleryStart learning →A merger requires book values of transferor assets to be adjusted only for what?
AExpected tax savings
BAnticipated inflation
CRecent market prices
DUniformity of policies
Answer & Solution
Correct answer: D. Uniformity of policies
Any revaluation would break the pooling basis, so the only permitted change is to align differing accounting policies.
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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?