GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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AS-10
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AS-14
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AS-18
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AS-22
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Detailed explanation-1: -Accounting Standard 14 caters to accounting for amalgamations and the treatment of the resulting goodwill or the reserves. AS 14 basically applies to companies.
Detailed explanation-2: -As per AS 14, an amalgamation is said to be in nature of merger, when it satisfies all of the following conditions: All the assets and liabilities of the selling company should become the assets and liabilities of the purchasing company after amalgamation.
Detailed explanation-3: -ICAI’s AS-14: Accounting for Amalgamations AS-14 of ICAI deals with accounting for amalgamations and the treatment of any resultant goodwill or reserves.
Detailed explanation-4: -14. The consideration for the amalgamation may consist of securities, cash or other assets. In determining the value of the consideration, an assessment is made of the fair value of its elements. A variety of techniques is applied in arriving at fair value.
Detailed explanation-5: -AS-14 deals with accounting for amalgamations.