Question

According to Accounting Standard (A

  • S 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.
B All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.
C At least 90% of the equity shareholders of the transferor company become equity shareholders of the transieree company.
D The amalgamation is accounted for using the purchase method.
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