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It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.

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Distinguish between internal and external reconstruction of a company?

internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction.


How does it benefit external users in accounting principles?

of accounting principles


Is employee an external user of accounting information?

External ueser


Which type of accounting information is intended to satisfy the needs of external users of accounting information?

Financial accounting


What is process of external recontruction?

"External reconstruction" means repairing the outer wall of something.


Internal and External Reporting Requirements?

differentiate between financial Accounting and management accounting


Examples of external users of accounting information?

external aiditor,shareholder,goverment etc


Internal and external accounting information?

internal = inside business external = outside business


The accounting process is concerned with internal and external transactions representing economic events?

The accounting process is concerned with both: internal and external transactions representing economic events.


What are some accounting companies locates in Austin Tx?

There are plenty of accounting companies in Austin, Texas. A few of the accounting companies in Austin, Texas include Cooper Graci & Company, McMordie & Company and Padgett Strateman & Company.


What companies have been accused of accounting fraud?

Companies that have been accused of accounting fraud include General Electric and Hospital Chain. Both companies were very suspicious, which is the reason why they've been accused of accounting fraud.


Distinguish between internal and external reconstruction of?

Internal Reconstruction: 1. No new company is formed. The existing company continues as a going concern; 2. The ailing company will not gove ito liquidation under the capital reduction scheme and 3. Involves complying the requirements under the Companies Act. External Reconstruction:- 1. A new company is formed by the existing shareholder of the old company to take over the assets and liabilities; 2. The ailing company goes into liquidation and 3. There is no need to comply with particular clause in the Companies Act. Anonymous regards Bhimireddy