alleryStart learning →At what value is non-cash consideration included for an amalgamation?
AFace value
BHistorical cost
CFair value
DNominal value
Answer & Solution
Correct answer: C. Fair value
Shares or assets given as consideration are measured at what they are worth, meaning fair value.
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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?