Accounting for Mergers and Acquisition

  • Vinod Kumar
  • Priti Sharma


This chapter provides framework of accounting for mergers. Accounting methods have been covered as per Indian Accounting Standard, AS 14 for mergers. Two methods of accounting, pooling of interest and purchase/acquisition method, have been described. The change in accounting standards due to convergence of Indian Accounting Standard with IFRS to form IndAS as new set of accounting standards is explained. The chapter details the relevant provisions pertaining to accounting of business combinations as dictated by IndAS 103. The business combinations have to follow purchase method of accounting in general. Only the specific combinations have to apply pooling of interest method of accounting in which there has been common control on combining entities before as well as after combination.


Indian Accounting Standard AS14 IndAS 103 Business combinations Accounting Pooling of interest Purchase method 

Copyright information

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Vinod Kumar
    • 1
  • Priti Sharma
    • 2
  1. 1.SGND Khalsa CollegeUniversity of DelhiNew DelhiIndia
  2. 2.Institute of Management Technology, Centre for Distance LearningGhaziabadIndia

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