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AS 4 or AS 5

A Ltd entered into an agreement with B Ltd on 1st Feb, 2019 wherein it was confirmed that former would acquire the later in near future. On 5th September, 1 month after Board approved FS, acquisition is effected. Should this be treated in books as per AS 4 or AS 5? Give a brief explanation


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

30-Nov-20 21:52

37

Answers (6)

You need to provide more details.


Suraj Lakhotia

Suraj Lakhotia

Admin

30-Nov-20 22:08

By this u mean negotiations were started ? And you are referring to Is this the event adjusting or not ? Then it is not as the date of approval is already gone


Mudassar Mahmood

Mudassar Mahmood

CA Inter

3K+

30-Nov-20 22:32

Mudassar Mahmood

By this u mean negotiations were started ? And you are referring to Is this the event adjusting or not ? Then it is not as the date of approval is already gone

Negotiations happened way before. Like I said agreement to acquire was entered into on 1st Feb.


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

01-Dec-20 08:32

Suraj Lakhotia Admin

What is the effective date of agreement?

We can assume the 1st Feb agreement to be


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

01-Dec-20 10:30

Thread Starter

Kumarjit Dey

We can assume the 1st Feb agreement to be

Then its an item to be included in the financial statements ending on March.


Suraj Lakhotia

Suraj Lakhotia

Admin

01-Dec-20 12:34

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