IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Treatment of Transferor company's Statutory Reserves in Amalgamation

Accountancy

In Transferee's book (merger): Add them to reserves & surplus In Transferee's book (purchase): pass this entry Amalgation Adjustment Reserve a/c dr To Statutory Reserve a/c In books of Transferor: Adjust with Equity Shareholders Account just like General Reserve, Accumulate losses in both cases (merger and purchase) Am I right?