AS 14 - 198 Accounting Standard(AS 14(issued 1994 Accounting for Amalgamations Contents INTRODUCTIO N Definitions EXPLAN ATION Types of

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198 Accounting Standard (AS) 14 (issued 1994) Accounting for Amalgamations Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-27 Types of Amalgamations 4-6 Methods of Accounting for Amalgamations 7-13 The Pooling of Interests Method 10-11 The Purchase Method 12-13 Consideration 14-15 Treatment of Reserves on Amalgamation 16-18 Treatment of Goodwill Arising on Amalgamation 19-20 Balance of Profit and Loss Account 21-22 Treatment of Reserves Specified in A Scheme of Amalgamation 23 Disclosure 24-26 Amalgamation after the Balance Sheet Date 27 ACCOUNTING STANDARD 28-46 The Pooling of Interests Method 33-35 The Purchase Method 36-39 Continued. ./. .
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199 Common Procedures 40-41 Treatment of Reserves Specified in A Scheme of Amalgamation 42 Disclosure 43-45 Amalgamation after the Balance Sheet Date 46 The following Accounting Standards Interpretation (ASI) relates to AS 14 also, although it was issued in the context of AS 22, ‘Accountin g for Taxes on Income’: ASI 11 - Accounting for Taxes on Income in case of an Amalgamation The above Interpretation is published elsewhere in this Compendium.
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Accounting Standard (AS) 14* (issued 1994) Accounting forAmalgamations (This Accounting Standard includes paragraphs 28-46 set in bold italic type and paragraphs 1-27 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of AccountingStandard (AS) 14, ‘Accounting for Amalgamations’ , issued by the Council of the Institute of Chartered Accountants of India. This standard will come into effect in respect of accounting periods commencing on or after 1.4.1995 and will be mandatory in nature. 2 The Guidance Note on Accounting Treatment of Reserves in Amalgamations issued by the Institute in 1983 will stand withdrawn from the aforesaid date. Introduction 1. This statement deals with accounting for amalgamations and the treatment of any resultant goodwill or reserves. This statement is directed principally to companies although some of its requirements also apply to financial statements of other enterprises. 2. This statement does not deal with cases of acquisitions which arise when there is a purchase by one company (referred to as the acquiring * A limited revision to this Standard has been made in 2004, pursuant to which paragraphs 23 and 42 of this Standard have been revised (see footnotes 4 and 8). 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard.
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Accounting for Amalgamations 201
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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AS 14 - 198 Accounting Standard(AS 14(issued 1994 Accounting for Amalgamations Contents INTRODUCTIO N Definitions EXPLAN ATION Types of

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