01 August 2010
I am a dealer in stock.(Holding Shares as stock in trade) I have 100 shares of company A I have 200 shares of company B
NOw both company A and B gets amalgamated and formed a new company C I was alloted 200 shares of new company C
I was holding Company A and B shares as closing stock, now what is the accounting treatment of new alloted shares of C and old shares of Company A and B
01 August 2010
Generally the Stock is Valued at Cost or Net Realisable Value which ever is Lower(AS-2). Hence you have to value the stock at cost price only as the market value is more than the cost price
CAclubindia
