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Amalgamation
Accountancy
Is it in the nature of Merger or Purchase
Answers (10)
As for my understanding, In order to be Merger: One of the condition is Atleast 90% of Equity share holding of Transferor co. should become Transferee co. at Face Value, Therefore, FV of ESH in Transferor is 15L And FV of ESH at the time of amalgamation in the books of Transferee co. is 12L. Which is less than 90%. Hence my point is Purchase Method. Please correct me if I am wrong
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036 137As for my understanding, In order to be Merger: One of the condition is Atleast 90% of Equity share holding of Transferor co. should become Transferee co. at Face Value, Therefore, FV of ESH in Transferor is 15L And FV of ESH at the time of amalgamation in the books of Transferee co. is 12L. Which is less than 90%. Hence my point is Purchase Method. Please correct me if I am wrong
Assuming business is continued, my F.V calc. Is right?
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