alleryStart learning →A purchase-method disclosure must state the amortisation period of what?
ACapital Reserve
BStatutory reserves
CGoodwill arising
DFair value gains
Answer & Solution
Correct answer: C. Goodwill arising
Only goodwill is amortised, so the period for writing it off must be disclosed under the purchase method.
Keep practising Accounting for Amalgamations
Browse all Accounting for Amalgamations questions for CA Inter, or explore more Accounting topics.
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?