Can someone please tell me what major difference between format of balance sheet after amalgamation in case of merger/ pooling of interest method and purchase method in chapter amalgamation ?

Mruthyunja · 20 Jul 2025

I will appear CA intermediate exam 2026 January

YASH · 20 Jul 2025

Pooling of interest method mein reserve and surplus bhi aad ho jate hai but purchase method mein aisa nhi gota

Jaswanth · 20 Jul 2025

1. Pooling of Interest Method: Assets, liabilities, and reserves of both companies are combined at their book values. 2. Purchase Method: Assets and liabilities of the acquired company are recorded at their fair values. 3. Goodwill: In pooling, no goodwill arises; in purchase, goodwill or capital reserve may arise. 4. Reserves: In pooling, all reserves (like general reserve) are retained; in purchase, only statutory reserves are shown. 5. Balance Sheet Impact: Pooling reflects a continuation of business, while purchase reflects a new acquisition.

Jaswanth · 20 Jul 2025

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