alleryStart learning →Pooling accounts for amalgamation as if the separate businesses were intended to do what?
ABe sold immediately
BBe revalued fully
CBe wound up quickly
DContinue as businesses
Answer & Solution
Correct answer: D. Continue as businesses
Pooling treats the combined companies as continuing, so only minimal changes are made when aggregating their statements.
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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?