Corporate accounting - Amalgamation

Amalgamation may be resorted to

• To obtain economies of scale

• To avoid competition

• To avail tax advantage

• All the above

Acquisition by a steel company of an iron ore mine is an example of

• Horizontal integration

• Backward integration

• Forward integration

• None of the above

Except for fractional shares, purchase consideration is paid to willing share holders of

acquiree in shares of acquirer when amalgamation is in the nature of

• Purchase

• Merger

• Internal reconstruction

• External reconstruction

If the acquirer revalues the assets of acquiree on amalgamation, it is a case of

• Purchase

• Merger

• Pooling of interest

• All the above

A new company is formed to take over the assets and liabilities of old company in the case of

• Amalgamation

• Absorption

• Internal reconstruction

• External reconstruction

No liquidation or formation takes place in the case of

• External reconstruction

• Amalgamation

• Internal reconstruction

• Take over

Full information regarding different forms of payment are stated when purchase

consideration is determined under

• Net asset method

• Intrinsic value method

• Net payment method

• Lump sum payment method