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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

18

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

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.


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

01-Dec-20 08:32

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

What is the effective date of agreement?


Suraj Lakhotia

Suraj Lakhotia

Admin

01-Dec-20 09:57

What is the effective date of agreement?

We can assume the 1st Feb agreement to be


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

01-Dec-20 10:30

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