Amalgamation Adjustment Reserve Account is Required in Respect of PDF

Amalgamation Adjustment Reserve Account is Required in Respect of PDF Download

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Amalgamation Adjustment Reserve Account is Required in Respect of PDF Summary

Dear readers, here we are presenting Amalgamation Adjustment Reserve Account is Required in Respect of PDF to all of you. Amalgamation adjustment account as stated under miscellaneous expenditure head as per old schedule vi will be shown under which head in the revised schedule under reserve & surplus in a negative balance or under other non-current/current asset.
It will provide a suitable justification also for the same. Accounting for Amalgamations” issued by ICAI an amalgamation adjustment account arises when certain statutory reserves need to be maintained by the transferee company which was previously maintained in the transferor company’s accounts.

Amalgamation Adjustment Reserve Account is Required in Respect of PDF

The Amalgamation Adjustment Reserve Account appears as a debit balance (negative figure) under the head, “Reserves and Surplus” on the balance sheet. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account should be reversed.
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