PLZ PLZ Help!
Thanks in Advance!
1. What all provosions & Reserves are to be taken i calculations of Net Assets taken over (Except General & Capital Reserves)?
2. Should we even consider Statutory Reserves (Ex. Gratuity Reserve) as a liability in net assets taken over(Ex. X reserve is proposed to be carried on for 4 years)
3. What is the easiest way to find out debit to Goodwill / Credit to Capital Reserve in Transferee Books??
4. What all assets should be taken in Realization A/c of transferor company?? i.e. should we take even assets & liabilities not taken over by new Co. ?
5. Effect on Net Assets & Purchase consideration if there exists :
(i)Only Transferor holding shares of Transferee (NOT BOTH)
(ii)Only Transferee holding shares of transferor (NOT BOTH)
6. Effect of inter company owing on Purchase Consideration.
7. Do unrecorded liabilities come into the calculation of Purchase Consideration?
CAclubindia
