IndigoLearn

Forums

A Basic Query related to Amalgamation when in Nature of Purchase

Why is it that Export Profit Reserve (EPR) and investment allowance reserve (IAR) of Vendor company does not get the same treatment as General reserve which is transfered to Equity Shareholders a/c and diminished. The EPR and IAR of Vendor company appears under Reserves & Surplus of Purchasing Conpany Balance Sheet. What is the nature of these reserves and why are they appearing in transferee's BS? [Illustration 5, pg 5.14]


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

02-Nov-20 20:37

26

Answers (2)

I noticed in the Balance Sheet also there appears a "Amalgamation Adjustment Reserve" with same amount if Vendor's EPR & IAR is combined.


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

02-Nov-20 20:40

Inter Testimonials
Testimonials CA Foundation July 21
Excel Launch
Study Planner
Business Law - CA Foundation
Fundamentals of Blockchain
Quote
Financial Modelling
Refer
EMI
Past_Exams
Tally + Excel Free
Tally Prime