Question

Explain the accounting treatment for analgamation in the nature of merger and analgamation in the nature of purchase​

Answer 1

Answer:

If the amalgamation is an 'amalgamation in the nature of purchase', the identity of the reserves, other than the statutory reserves dealt with in paragraph 18, is not preserved. The amount of the consideration is deducted from the value of the net assets of the transferor company acquired by the transferee company.

Explanation:

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Answer 2

Answer:

In the case of an 'amalgamation in the nature of merger', the balance of the Profit and Loss Account appearing in the financial statements ...

Explanation:

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