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    Pratik Sawant
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    Accounting Standard 14 outlines the accounting treatment for amalgamations, or the combining of multiple entities into one. It defines amalgamation and discusses the two types: merger and purchase. The standard also describes the two methods for accounting for amalgamations - the pooling of interest method, which treats the amalgamation similar to a continuation of the separate businesses, and the purchase method, which applies the same principles as a normal asset purchase. It concludes by covering the treatment of reserves, goodwill, retained earnings, and amalgamations that occur after the balance sheet date.

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    Accounting Standard 14 outlines the accounting treatment for amalgamations, or the combining of multiple entities into one. It defines amalgamation and discusses the two types: merger and purchase. The standard also describes the two methods for accounting for amalgamations - the pooling of interest method, which treats the amalgamation similar to a continuation of the separate businesses, and the purchase method, which applies the same principles as a normal asset purchase. It concludes by covering the treatment of reserves, goodwill, retained earnings, and amalgamations that occur after the balance sheet date.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    9 views5 pages

    As 14

    Uploaded by

    Pratik Sawant
    Accounting Standard 14 outlines the accounting treatment for amalgamations, or the combining of multiple entities into one. It defines amalgamation and discusses the two types: merger and purchase. The standard also describes the two methods for accounting for amalgamations - the pooling of interest method, which treats the amalgamation similar to a continuation of the separate businesses, and the purchase method, which applies the same principles as a normal asset purchase. It concludes by covering the treatment of reserves, goodwill, retained earnings, and amalgamations that occur after the balance sheet date.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    ACCOUNTING STANDARD(AS) 14

    (issued 1994)

    ACCOUNTING FOR AMALGAMATION


    By Aniruddha Rege-101 & Pratik Sawant-104

    INTRODUCTION

    Amalgamation : is the process of combining or uniting multiple entities into one form.

    Types of Amalgamation: 1. which are in the nature of merger 2. which are in the nature of purchase

    METHODS OF AMALGAMATION

    Pooling of Interest method Object is to account for the amalgamation as if the separate businesses of the amalgamating companies were intended to be continued by the transferee company. Purchase method Object is to account for the amalgamation by applying the same principles as are applied in the normal purchase of assets.

    TREATMENTS ON AMALGAMATIONS

    Treatment of Reserves Treatment of Goodwill arising Balance of Profit & Loss Account Amalgamation after the Balance Sheet date

    Thank You

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