The excess payment by the new company to the amalgamating companies for the appraised value of the…
Under Accounting Standard 14 (Purchase Method of accounting for amalgamations), when the purchase consideration paid by the transferee company exceeds the net appraised fair…
Choose your answer
The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as
Answer and explanation
Correct answer C
Under Accounting Standard 14 (Purchase Method of accounting for amalgamations), when the purchase consideration paid by the transferee company exceeds the net appraised fair value of the identifiable assets and liabilities acquired from the transferor company, the excess payment is recorded as Goodwill.
Practice for these exams
-
Gujarat SET (GSET)
-
UGC NET Management