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In Amalgamation, can Goodwill and Capotal Reserve be Netted off?

If two companies were amalgamated to form a new company and the amalgamation was in the nature of purchase and the result of purchasing one company was goodwill and that of another was Capital Reserve. So, as per AS 14, can these resultant goodwill and Capital Reserve be netted off in the transferee's books? like this author has done in the image below

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20201111_015155.jpg


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 01:53

46

Answers (3)

Best Answer

We can set off or show separately


Suraj Lakhotia

Suraj Lakhotia

Admin

11-Nov-20 15:59

Is it mandatory is set off or we can show separate as goodwill and capital reserve also


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 01:56

We can set off or show separately

Thank you


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 17:08

Happy Mother's Day
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