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PURCHASE CONSIDERATION Purchase Consideration refers to the payment made by the transferee company to the transferor company for the business taken over. It includes all types of payments made in the form of the shares, securities, bonds or cash etc. ACCORDING TO ACCOUNTING STANDARD 14 “The aggregate of shares and other securities issued and the…
MEANING Amalgamation is a process in which the companies liquidate to create a new company, which takes over the business of liquidating companies. Accounting Standard 14 issued by the Institute of Chartered Accountants of India deals with the accounting for amalgamation. EXAMPLE: If A Ltd. And B Ltd. Are taken over by a newly formed…
MEANING Divisible Profits are the profits that are legally available for distribution among the shareholders by way of dividend. These are the profits which the directors consider should be distributed after making provision for past losses and reserves. LEGAL RESTRICTIONS UNDER SECTION 123 (1): As per this section, the payment of dividends can be made…
BALANCE SHEET AS PER COMPANIES ACT 2013 Balance sheet is a statement of financial position of a company at a specified moment of time. It shows the company’s assets on one side and company’s liabilities on the other side. It tells about the solvency, profitability and liquidity position of the firm. Section 129 of the…
SOURCES OF REDEMPTION OF DEBENTURES Redemption of debentures means the amount of repayment to the debenture holders of the debt due to them. The debentures are usually repaid after the expiry of certain time period. When debentures are redeemed, liability on account of debentures is discharged. Amount of funds required for redemption of debentures is…
MEANING Redemption of debentures means the amount of repayment to the debenture holders of the debt due to them. The debentures are usually repaid after the expiry of certain time period. When debentures are redeemed, liability on account of debentures is discharged. Amount of funds required for redemption of debentures is quite large and therefore…
ISSUE OF DEBENTURES Debenture is an instrument issued by the company acknowledging its debt. Issue of Debentures is made by the company under its seal. It is a contract for the repayment of the amount borrowed by the company from the debentureholder after certain period or at the option of company. ACCORDING TO SECTION 2…
MEANING Debentures is an instrument issued by the company acknowledging its debt. It is issued by the company under its seal. It is a contract for the repayment of the amount borrowed by the company from the debentureholder after certain period or at the option of company. ACCORDING TO SECTION 2 (30) OF THE COMPANIES…
BUY BACK OF SHARES Buy Back is the corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than the market price. When the company buys its shares back, the number of outstanding shares in the market reduces. Buy Back of Shares is also known as…
REDEMPTION OF PREFERENCE SHARES Redemption of Preference Shares means returning the capital to the preference shareholders either at a fixed date or after a certain time period during the lifetime of the company provided company must complied certain conditions. ACCORDING TO THE COMPANIES ACT 2013 “A company is not allowed to return to its shareholders…
