Financial Accounting Project on Accounting Standards
198
Accounting Standard (AS) 14
(issued 1994)
Accounting for Amalgamations Contents
INTRODUCTION Definitions EXPLANATION Types of Amalgamations Methods of Accounting for Amalgamations The Pooling of Interests Method The Purchase Method Consideration Treatment of Reserves on Amalgamation Treatment of Goodwill Arising on Amalgamation Balance of Profit and Loss Account Treatment of Reserves Specified in A Scheme of Amalgamation Disclosure Amalgamation after the Balance Sheet Date ACCOUNTING STANDARD The Pooling of Interests Method The Purchase Method Paragraphs 1-3 3 4-27 4-6 7-13 10-11 12-13 14-15 16-18 19-20 21-22 23 24-26 27 28-46 33-35 36-39
Continued../..
199
Common Procedures Treatment of Reserves Specified in A Scheme of Amalgamation Disclosure Amalgamation after the Balance Sheet Date
40-41 42 43-45 46
The following Accounting Standards Interpretation (ASI) relates to AS 14 also, although it was issued in the context of AS 22, ‘Accounting for Taxes on Income’:
ASI 11 - Accounting for Taxes on Income in case of an Amalgamation
The above Interpretation is published elsewhere in this Compendium.
180 AS 14 (issued 1994)
Accounting Standard (AS) 14*
(issued 1994)
Accounting for Amalgamations
(This Accounting Standard includes paragraphs 28-46 set in bold italic type and paragraphs 1-27 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of Accounting Standard (AS) 14, ‘Accounting for Amalgamations’, issued by the Council of the Institute of Chartered Accountants of India. This standard will come into effect in respect of accounting periods commencing on or after 1.4.1995 and will be mandatory in nature.2 The Guidance Note on Accounting Treatment of Reserves in Amalgamations issued by the Institute in 1983 will stand withdrawn
Accounting Standard (AS) 14
(issued 1994)
Accounting for Amalgamations Contents
INTRODUCTION Definitions EXPLANATION Types of Amalgamations Methods of Accounting for Amalgamations The Pooling of Interests Method The Purchase Method Consideration Treatment of Reserves on Amalgamation Treatment of Goodwill Arising on Amalgamation Balance of Profit and Loss Account Treatment of Reserves Specified in A Scheme of Amalgamation Disclosure Amalgamation after the Balance Sheet Date ACCOUNTING STANDARD The Pooling of Interests Method The Purchase Method Paragraphs 1-3 3 4-27 4-6 7-13 10-11 12-13 14-15 16-18 19-20 21-22 23 24-26 27 28-46 33-35 36-39
Continued../..
199
Common Procedures Treatment of Reserves Specified in A Scheme of Amalgamation Disclosure Amalgamation after the Balance Sheet Date
40-41 42 43-45 46
The following Accounting Standards Interpretation (ASI) relates to AS 14 also, although it was issued in the context of AS 22, ‘Accounting for Taxes on Income’:
ASI 11 - Accounting for Taxes on Income in case of an Amalgamation
The above Interpretation is published elsewhere in this Compendium.
180 AS 14 (issued 1994)
Accounting Standard (AS) 14*
(issued 1994)
Accounting for Amalgamations
(This Accounting Standard includes paragraphs 28-46 set in bold italic type and paragraphs 1-27 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of Accounting Standard (AS) 14, ‘Accounting for Amalgamations’, issued by the Council of the Institute of Chartered Accountants of India. This standard will come into effect in respect of accounting periods commencing on or after 1.4.1995 and will be mandatory in nature.2 The Guidance Note on Accounting Treatment of Reserves in Amalgamations issued by the Institute in 1983 will stand withdrawn