Abstract
Business combinations have become the most preferred route for business houses to achieve growth at a faster pace, given today’s intensely competitive global business environment. In regard to accounting for business combinations, the paper aims to compare and contrast the provisions of old Accounting Standard (AS) 14 on ‘Accounting for Amalgamations’ issued by the Institute of Chartered Accountants of India (ICAI) in 1995 with that of new International Financial Reporting Standard (IFRS) 3 converged Indian Accounting Standard (Ind AS) 103 on ‘Business Combinations’ issued by ICAI and notified as ‘standards’ by the Ministry of Corporate Affairs (MCA) in 2011. The paper showcases extensive coverage in Ind AS 103 vis-à-vis AS 14 not only in respect of accounting method, valuation of assets and liabilities, nature of consideration, measurement of non-controlling interest, treatment of goodwill / capital reserve or bargain purchase to mention a few, but also in its reference to various types of business combinations, including that of reverse acquisitions and business combinations under common control.
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