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

Accountancy

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

20201111_015155.jpg

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 01:53

417

Answers (3)

Best Answer

We can set off or show separately


CA Suraj Lakhotia

CA 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


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 01:56

CA Suraj Lakhotia Admin

We can set off or show separately

Thank you


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 17:08

Offer