Accounting · Amalgamation Accounting (AS 14)
Under Accounting Standard 14 (AS 14 - Accounting for Amalgamations), when an amalgamation is in the 'nature of merger', how are the assets, liabilities, and reserves of the transferor company recorded in the books of the transferee company?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only assets and liabilities are recorded while all reserves are transferred to Goodwill
- 2Assets at book value and liabilities at liquidation value
- 3At their existing carrying amounts (book values) as appearing in the financial statements of the transferor company✓
- 4At their fair market values on the date of amalgamation
Correct answer
At their existing carrying amounts (book values) as appearing in the financial statements of the transferor company
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