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AS 4 or AS 5
Accountancy
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
Answers (6)
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 DeyNegotiations happened way before. Like I said agreement to acquire was entered into on 1st Feb.
What is the effective date of agreement?
CA Suraj Lakhotia Admin
What is the effective date of agreement?
We can assume the 1st Feb agreement to be
Thread Starter
Kumarjit DeyWe can assume the 1st Feb agreement to be
Then its an item to be included in the financial statements ending on March.
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