amalgamation

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Baljeet Kaur (Querist)
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02 September 2010 There are two methods in amalgamation for calculating purchase consideration i.e Net Asset Method And Payment Method .

Can u please tell me which method is used in pooling of interest method and in purchase method?

and

Are the pc in both the methods same?

shakuntala chhangani

shakuntala chhangani (Expert)
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25 September 2010 Hi Baljeet, none of these methods will be used in case of pooling of interest method as under this method assets and liabilities are carried at book value unlike net assets method where assets and liabilities are taken at fair value. further there is no question of net payment method also as purchased consideration is discharged by issuing shares except that cash can be paid for fraction of share.
the difference between new capital issued and old capital cancelled is g/w or cap. res which is required to be adjusted in reserves.
Regards, CA Shakuntala Chhangani