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Veera Ltd. and Zeera Ltd. form a new entity, Meera Ltd., which issues 100 shares to Veera's shareholders and 50 to Zeera's shareholders, reflecting FVs. Voting rights mirror shareholdings. Identify the accounting acquirer under Ind AS 103.
AVeera Ltd., because its shareholders end up with 67% of Meera's voting rights
BNo acquirer — this is a roll-up combination outside Ind AS 103
CZeera Ltd., because its shareholders receive new shares
DMeera Ltd., because it issues the equity
Answer & Solution
Correct answer: A. Veera Ltd., because its shareholders end up with 67% of Meera's voting rights
The newly formed Meera Ltd. is a 'roll-up' vehicle; Ind AS 103 requires identifying one of the legacy operating entities as the acquirer. The combining entity whose former owners receive the largest portion of voting rights in the combined entity is the acquirer — Veera's 100/150 = 67% makes it the accounting acquirer.
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