Week 10 (student)

Week 10 (student) - Accounting for merger 1 Concept of...

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    1    Accounting for merger
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2 Concept of merger accounting No acquisition has occurred and there has been a  continuation of risk and benefits to the controlling  party  that  existed  prior  to  the  business  combination Focus on non-domination.
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3 Share Premium (Section 48B) Where  the  company  issues  shares  at  a  premium,  whether for cash or otherwise, a sum equal to the  aggregate  amount  or  value  of  the  premiums  on  those  shares  shall  be  transferred  to  the  “share  premium account”
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4 Merger Relief under the Company Ordinance Companies (Amendment) Ordinance 1999  introduced the concept of merger relief, provide  full or partial relief from requirement to recognize  share premium under Section 48B
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Company A Company B Eliminatio n Consolidate d Tangible fixed assets 140 120 260 Investment in B 100 - - Net current assets 10
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Week 10 (student) - Accounting for merger 1 Concept of...

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