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Amalgamation

Accountancy

For Amalagamation questions ,if we need to use Intrinsic Value method ,is it always mentioned to use this method.And so if we are not asked to use this method ,that means question mein no need to use Iv method?Pls any faculty or any student confirm?

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pradyumna hariramani

pradyumna hariramani

CA Inter

290

03-Nov-22 15:13

615

Answers (7)

Best Answer

Check for agreed upon value first , if not found , take the market value , if that's also not available then go for intrinsic value method

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What do you mean by agreed upon value ?


Thread Starter

pradyumna hariramani

pradyumna hariramani

CA Inter

290

03-Nov-22 15:30

Thread Starter

pradyumna hariramani

What do you mean by agreed upon value ?

It's the value at which the both parties of amalgamation arrive at or agree upon , it can be different from the market value or the face value of shares .


Anjana Menon

Anjana Menon

CA Inter

20K+

03-Nov-22 16:43

Anjana Menon

It's the value at which the both parties of amalgamation arrive at or agree upon , it can be different from the market value or the face value of shares .

Dp you mean Net Asset or net payment calculation for purchase consideration?


Thread Starter

pradyumna hariramani

pradyumna hariramani

CA Inter

290

03-Nov-22 16:49

Anjana Menon

Net payment calculation

Alright tysm!


Thread Starter

pradyumna hariramani

pradyumna hariramani

CA Inter

290

03-Nov-22 16:52

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