What is the accounting treatment for amalgamation in the books of the transferee company?
Options
APooling of interests method
BPurchase method
CBoth A and B
DNone of the above
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Amalgamation of CompaniesMCQQuestion 5728 of 6
All Questions Correct Answer
✅ Option C — Both A and B
All Options:
- APooling of interests method
- BPurchase method
- CBoth A and B ✓
- DNone of the above
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Detailed Solution & Explanation
The accounting treatment for amalgamation in the books of the transferee company depends on the nature of the amalgamation. If the amalgamation is in the nature of a merger, the pooling of interests method is used, whereas if the amalgamation is in the nature of a purchase, the purchase method is used.
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