Consideration for amalgamation is the aggregate of securities issued and what else?
AGoodwill written off
BDividends declared
CReserves transferred
DCash or other assets paid
Answer & Solution
Correct answer: D. Cash or other assets paid
Consideration adds up the shares and securities issued and any cash or other assets paid to the transferor's shareholders.
Keep practising Accounting for Amalgamations
Browse all Accounting for Amalgamations questions for CA Inter, or explore more Accounting topics.
Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?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?AS 14 is directed principally at which type of enterprise?