PPT ON AMALGAMATION

1. AMALGAMATION OF COMPANIES
PRESENTED BY –
SHANKAR SINGH
MBA 3RD
SEMESTER
ROLL NO -
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 Amalgamation in the nature of merger
 Amalgamation in the nature of purchase
Amalgamation in the nature of merger
•All the assets and liabilities of a transferor company
become the assets of transferee , after amalgamation.
•Shareholders holding not less than 90% of the face value
of the equity shares of the transferor company become
equity shareholders of the transferee company by virtue
of amalgamation .
•The business of the transferor company is intended to
be carried on by transferee company after the
amalgamation .
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Amalgamation in nature of purchase
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ADVANTAGES AND DISADVANTAGES AMALGAMTION
Advantages Disadvantages
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PURCHASE CONSIDERATION
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Pooling of interest method
 Where all the assets liabilities and interest of
shareholders are pooled .
• Asets liabilities and reserves of transferor company are
recorded by the transferee company at their existing
carrying amount .
• If transferor and transferee company have conflicting
accounting policies , a uniform set of accounting
policies are adopted following the amalgamation .
Purchase method
 acquisition of one company by another for a price .
• The transferee company accounts for amalgamation –
by incoprporating the assets and liabilities at their
existing carrying amount
• - by allocation the consideration to individual
identifying assets and liabilities of transferor company
on the basis of their fair value at the time of
amalgamation .
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ThankYou
MBA DEPARTMENT
SUBMITTED TO -
CHANDAN SIR
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