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As 14

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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Pratik Sawant
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42 views5 pages

As 14

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.

Uploaded by

Pratik Sawant
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

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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