IndigoLearn

Amalgamation, purchase consideration

Purchasing co. Paid consideration to selling co. Through shares,Deb,cash etc. In Indigo learn of 4th problem.. Neal Ltd which is purchasing co paid itself shared how it's possible ... Can u please explain this sir ... i.e., 1)Paid to share holders of Neal Ltd,paid in the form of equity &pre shares of Neal Ltd 2) paid to share holders of Gagan Ltd, paid in the form of equity & pre shares of Gagan Ltd. My query..A)if one co is purchased the another co. Then such co. Only paid purchase consideration to selling co. [Here,both cos are involved in the purchase consideration computation] B)if both cos are included,then why it is paid to itself other than alternate co...?


anju B

anju B

CA Inter

10K+

20-Oct-20 10:36

18

Answers (7)

Why camera feature is not working....?


anju B

anju B

CA Inter

10K+

20-Oct-20 10:39

Valuation of purchase consideration

Attachments

IMG_20201020_104127~2.jpg


anju B

anju B

CA Inter

10K+

20-Oct-20 10:44

The new company will issue shares to the shareholders of existing / selling company.


Suraj Lakhotia

Suraj Lakhotia

Admin

20-Oct-20 17:27

Yes sir, but in this case Neal which was purchasing co . Paid to Neal sh holders , paid in the form of shares of Neal Ltd? How it's possible. Vice versa of selling co (Gagan Ltd)


anju B

anju B

CA Inter

10K+

20-Oct-20 18:37

Yes sir, but in this case Neal which was purchasing co . Paid to Neal sh holders , paid in the form of shares of Neal Ltd? How it's possible. Vice versa of selling co (Gagan Ltd)

The faculty has told equity shares of new company. The display text looks like neel but it is new company.


Suraj Lakhotia

Suraj Lakhotia

Admin

23-Oct-20 16:35

Okay sir,so Neal Ltd and gagan Ltd come together to form a NEW co. (Some xltd).... Here, Neal and gagan are old cos.


anju B

anju B

CA Inter

10K+

23-Oct-20 19:43