PURCHASE CONSIDERATION
varun (study) (52 Points)
15 November 2020
Shares given to the debenture holders of selling company by purchasing company can be considered as purchase consideration?
1 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 15 November 2020
Usually Entity vs entity. You must have presumed the question wrong because purchase consideration is between parent and subsidiary only. There is a concept called business entity concept which separated a business entity from the owners. Purchase consideration is payed by parent and received by subsidiary.
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