alleryStart learning →In merger accounting, resultant assets, liabilities, capital and reserves roughly equal what?
AFair value of both
BTransferor's alone
CSum of both companies
DTransferee's alone
Answer & Solution
Correct answer: C. Sum of both companies
Because merger accounting pools the companies, combined balances approximate the sum of the individual balances.
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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?If a scheme departs from AS 14 on reserves, what must be disclosed?AS 14 is directed principally at which type of enterprise?