I WANT 2 KNOW THAT IN ORDER 2 DETERMINE WHETHER THE METHOD USED IS PURCHASE OR MERGER.WE HAV 2 SEE ONLY ASSETS VALUE AT WHICH THEY R T/O.
IF THEY R DIFF THEN IT IS PURCHASE OTHERWISE MERGER.
RIGHT OR WRONG ?
THNX FOR HELP.
AKSHIT MALHOTRA (C.A Final Student) (1337 Points)
01 November 2011I WANT 2 KNOW THAT IN ORDER 2 DETERMINE WHETHER THE METHOD USED IS PURCHASE OR MERGER.WE HAV 2 SEE ONLY ASSETS VALUE AT WHICH THEY R T/O.
IF THEY R DIFF THEN IT IS PURCHASE OTHERWISE MERGER.
RIGHT OR WRONG ?
THNX FOR HELP.
Tanash Chakraborty
(KPMG)
(292 Points)
Replied 01 November 2011
dat is one of the conditions.... all the conditions are as follows---
1.all assets and liabilities taken over at book value
2.aleast 90% of shareholders agree for the merger
3.equity shareholderss are paid off in equity shares of the new company only