Abstract
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.
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© 2019 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
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Kumar, V., Sharma, P. (2019). Accounting for Mergers and Acquisition. In: An Insight into Mergers and Acquisitions. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-5829-6_6
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DOI: https://doi.org/10.1007/978-981-13-5829-6_6
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Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-5828-9
Online ISBN: 978-981-13-5829-6
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