16 August 2010
Liquidation expenses is not obligation (expense) of transferee co. but of the transferor co. The same being met by transferee co. is also one type of consideration paid. & Hence they r debited to goodwill or capital reserve
17 August 2010
'Actual purchase consideration', as the title itself indicates, is an amount for the net assets acquired. i.e. consideration for the "purchase".
Any other payment if made is also a consideration but factually not towards such purchase.
At last...the difference (if any) between the net assets acquired & TOTAL consideration is reflected as goodwill/cap reserve. There's nothing wrong in the treatment & no flaw...
CAclubindia
