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]
Thread StarterKumarjit Dey
I noticed in the Balance Sheet also there appears a "Amalgamation Adjustment Reserve" with same amount if Vendor's EPR & IAR is combined.
Query solved myself. Solution in pg 5.13.