This document discusses different types of amalgamation of companies, including amalgamation in the nature of merger and amalgamation in the nature of purchase. It explains that in an amalgamation in the nature of merger, all assets and liabilities of the transferor company become assets of the transferee company, and shareholders of the transferor holding over 90% equity shares become shareholders of the transferee. It also covers the advantages and disadvantages of amalgamation, as well as the pooling of interest and purchase methods for accounting for 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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MBA DEPARTMENT
SUBMITTED TO -
CHANDAN SIR
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