Question

    According to Accounting Standard (AS) 14-Accounting for

    Amalgamations, which of the following is NOT a condition required for an amalgamation to be classified as a 'merger'?
    A The business of the transferor company is intended to be continued by the transferee company. Correct Answer Incorrect Answer
    B All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company. Correct Answer Incorrect Answer
    C At least 90% of the equity shareholders of the transferor company become equity shareholders of the transieree company. Correct Answer Incorrect Answer
    D The amalgamation is accounted for using the purchase method. Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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