alleryStart learning →Specific provisions in a purchase deal may cover which expected costs?
ABrand advertising costs
BAnnual dividend payouts
CDirectors' sitting fees
DEmployee termination costs
Answer & Solution
Correct answer: D. Employee termination costs
If the transferee plans changes such as layoffs or moving plant, specific provisions for those expected costs may be created.
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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?