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Purchase consideration settlement
Accountancy
Purchase consideration means any payment to owners of the company i.e. Shareholders. So pc does not include any settlement made to debenture. That logic is enough know. Again in this video net assets value does not effect on settlement made. What is that. I didn't understand the 2nd logic. Video Details ------------- P1 - Advanced Accounting - Without AS Amalgamation of Companies #7. Illustration 1 X Ltd Part 2
Answers (1)
There net asset value does not change because the debentures are redeemed by issuing new debentures as the liability does not change If those are redeemed for cash then it will have impact on both liabilities side and the assets side with the same amount. So net assets will not change
