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External reconstruction is essentially covered under which standard?
AAS 10
BAS 14 Amalgamation in the nature of merger
CAS 17
DAS 26
Answer & Solution
Correct answer: B. AS 14 Amalgamation in the nature of merger
1. Step 1: Per Ch 14, external reconstruction is covered under AS 14 — Amalgamation in the nature of merger.
2. Step 2: The transferee company continues the business with substantially same shareholders.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_