ACCOUNTING FOR AMALGAMATION The Pooling of Interest Method
ACCOUNTING FOR AMALGAMATION The Pooling of Interest Method The Pooling of Interest Method Since merger is a combination of two or more separate business, there is no reason to restate carrying amounts of assets and liabilities. Accordingly, only minimal changes are made in aggregating the individual financial statements of the amalgamating companies. In preparing the transferee company’s financial statements, the assets, liabilities and reserves (whether capital or revenue or arising on revaluation) of the transferor company should be recorded at their existing carrying amounts and in the same form as at the date of the amalgamation. The balance of the Profit and Loss Account of the transferor company should be aggregated with the corresponding balance of the transferee company or transferred to the General Reserve, if any. If, at the time of the amalgamation, the transferor and the transferee company having conflicting accounting policies, a uniform set of accounting policies should be adopted following the amalgamation. The effects on the financial statements of any changes in accounting policies should be reported in accordance with Accounting Standard (AS-5), Net Profit or Lo.......... cs professional corporate restructuring notes amalgamation - merger -cs professional notes
Get the latest updates & Offers right in your inbox.
Copyright © 2015 by CS NOTES HOME