alleryStart learning →All merger conditions are met except that the transferor's business will be wound up. Which method applies?
APurchase method
BCost method
CEquity method
DPooling method
Answer & Solution
Correct answer: A. Purchase method
Continuation of the transferor's business is a merger condition, so failing it means the purchase method must be used.
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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?