Question

In the merger of X Ltd. and Y Ltd., it is decided that the amalgamation will be in the nature of a merger (as per AS-14). Which of the following conditions must be satisfied for this treatment to apply?

Q: Answer-In the merger of X Ltd. and Y Ltd., it is decided that the amalgamation will be in the nature of a m...

AS-14 requires that for an amalgamation in the nature of a merger, 90 of equity shareholders of the transferor company must become equity shareholders of the transferee. This ensures continuity of ownership and operations.

A Purchase consideration is paid in cash

B 90% of the equity shareholders of transferor become shareholders of transferee

C Assets are revalued

D Business combinations must be non-pooling

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In the merger of X Ltd. and Y Ltd., it is decided that the amalgamation will be in the nature of a merger (as per AS-14). Which of the following conditions must be satisfied for this treatment to apply?

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