opening entries in the case of amalgamation in the nature of merger (pooling of interest method)
1) for purchase consideration payable:
Business purchase a/c dr
To liquidators of transferor(seller) company
2)for incorporation of assets,liabilities and reserves:
various assets(taken over) a/c dr
general reserve or (capital loss)a/c dr
(bal fig)
To creditors
To bills payable
To reserves(other than general reserve or p/l A/c when general reserve is not there)
To p/l a/c
To business purchase a/c
To general reserve a/c (capital gain)
(bal fig)
BUT WHERE AS IN THE NATURE OF PURCHASE METHOD:
purchase consideration remains the same ,but
for incorporation of assets and liabilities:
plant and machinery a/c (revised value) dr
land and building a/c (revised value) dr
other fixed assets a/c (revised value) dr
debtors a/c (revised value) dr
stock a/c (revised value) dr
bank a/c dr
goodwill a/c (bal fig)
To creditors
To bills payable
To other liabilities
To capital reserve a/c (bal fig)
all other format remains the same... for more information refer bbm 3rd sem corporate accounting..:)
Takeover means buying the controlling percentage of shares of the target company. Merger means the purchase of one company by another company.
there is no difference.
When two or more companies are merged with their assets and liabilities, they are called merger. Whereas when they are separated/detached from each other,they are called demerger.
A partnership is a venture by two or more people. A merger is when the owners of two businesses agree to join their firms together to make one business
Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.
Takeover means buying the controlling percentage of shares of the target company. Merger means the purchase of one company by another company.
there is no difference.
Consolidation, union, merger, blend, fusion, mixture
The Joint Venture is temporary partnering and alliance but Merger is permanently combination.
"Very often, the two expressions "merger" and "amalgamation" are taken as synonymous. But there is, in fact, a difference. Merger is restricted to a case where the assets and liabilities of the companies get vested in another company, the company which is merged losing its identity and its shareholders becoming shareholders of the other company. On the other hand, amalgamation is an arrangement, whereby the assets and liabilities of two or more companies become vested in another company (which may or may not be one of the original companies) and which would have as its shareholders substantially, all the shareholders of the amalgamating companies." I found it while surfing for the same... Hope it answers.
Union, mix, mixture, fusion, admixture, amalgam, amalgamation, blend, consolidation, combination.
When two companies combine to form a single company, it is called an amalgamation or merger.
When two or more companies are merged with their assets and liabilities, they are called merger. Whereas when they are separated/detached from each other,they are called demerger.
A partnership is a venture by two or more people. A merger is when the owners of two businesses agree to join their firms together to make one business
Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.
Horizontal Merger A horizontal merger is a merger between two competitors. Suppose, for example, that tomorrow Nokia were to buy Sony ericsson. This would be a horizontal merger. Vertical Merger A vertical merger occurs when a supplier buys a reseller, or vice versa. The key point is that the two companies have a buyer-seller relationship. Suppose that a food retailer purchased a company that manufactures food. This would be a vertical merger. Or, suppose that a pharmaceutical company acquired a drugstore chain. Vertical mergers are more likely to be approved by regulatory authorities. Consumers can benefit from the increased efficiencies that result from supply chain integration--- often in the form of lower prices and/or better service. Conglomerate Merger A conglomerate merger is a union of two companies that a.) are not competitors, and b.) not part of the same supply chain. If Oracle were to purchase a fast food chain, this would be a conglomerate merger. Software has no relationship to fast food; fast food has no connection to software (other than providing sustenance for programmers who work long hours.)
melding; admixture; mixture; liquification; melting; smelting; soldering; uniting; blend; blending; mix; amalgam; amalgamation; heating; commixture; merger; unification; coalition; welding