Dear Renuka
1.)These two terms are by name itself is two different things Realisation and Valuation it is not necessary that valued assets are realisable at their valuation price just to clear you lets take an example of debtor it has a fixed realisation no one is going to value the debtors and it gives a fixed cash flow to the entity.
On the other hand the concept of valuation has been introduced for intangible assets as they are not having fixed realisable value that is why the valuation has been carried out to book that particular assets in the accounts if valuation wouldn�t have been done how these can be recognised in the books of accounts.
Intangible assets satisfied the Assets recognition criteria that is Intangible assets are the Resources controlled by entity and having future economic benefits that is the reason they are going to be valued for the purpose of taking place in the Entity�s book of account it has no relation with the realisation but has valued according to the best estimates.
2.) If you are saying that Goodwill on Business Combination has been created then how it is further possible to record a capital reserve in one transaction u can have either profit or loss two in one are not possible either you book goodwill or record capital reserve when you have already booked goodwill then capital reserve cannot be created in simple words i can say that you first acquire the business and book a journal entry with the Purchase Consideration then further you should compare the net assets acquired with pc paid then the difference will automatic tells you the true picture which may be Goodwill or Cap Res but sometimes the valuation of Goodwill has already been carried out by the M&A team of an entity in that case it is clear cut that you are definitely going to pay for Goodwill then in that case how come the capital reserve arise.
For your kind info in Ind as 103 Business Combination there are no A/cng methods of Combination so there is no concept of purchase method and merger method.
3.) Development phase creates an asset that is why in this phase expenditure incurred is Capitalised where as in research phase it has been transferred to statement of P&l as no new assets has been created in this phase.
4.)This question is related to two different Financial Reporting framework amortisation method depends upon which frf entity is preparing it's Financials both are correct.
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