alleryStart learning →What can influence fair value determination in a purchase-type amalgamation?
AAuditor's appointment
BNumber of directors
CTransferor's dividend rate
DTransferee's intentions
Answer & Solution
Correct answer: D. Transferee's intentions
A buyer with a specialised use for an asset may value it differently, so fair values can reflect the transferee's plans.
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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?