Question

33)Amalgamation is dealt with by
A)AS 9
B) AS 14
C) AS 16
D) AS 3
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Answer 1

Answer:

amalgamation is dealt by a s 14

Answer 2

Answer:

Amalgamation is dealt with by AS 14.

Explanation:

• Accounting Standard 14 refers to accounting for amalgamations and the treatment of goodwill or reserves.
• it is applied to companies only.
• Amalgamation refers to a situation where both companies merge and become a new companies.
• It is the merger or acquisition of many smaller companies into a much large company.
• AS 14  is applicable when two companies amalgamate and form a new company & accounting is done according to AS 14.
• there are two types of Amalgamation:

1. Amalgamation in the Nature of Merger.
2. Amalgamation in the Nature of Purchase.

• Methods of Accounting for AS 14

1. Pooling of Interest Method
2. Purchase Method

Thus, Amalgamation is dealt with by AS 14.

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