Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
MERGER ACCOUNTING:
It may happen that, during a "take-over" of one company (A) by another company (B), shares in the latter company are issued to shareholders of the former company in exchange. Company A would then be dissolved and Company B would acquire its shares. Should a share premium account be established by company B when the assets of Company A exceed the nominal value of Company A's shares? If a share premium account is opened the pre-acquisition profits of Company A would not be distributed by Company B. It may therefore be decided that no share premium account is to be opened. Further this method of accounting is called as "merger accounting".
AQUISITION ACCOUNTING AND "MERGER RELIEF"
In SHEARER V BERCAIN (1980) it was held that "merger accounting" is illegal and that a "true value" must be attributed to the non-cash assets acquired and the excess of the "true value" over the nominal value of the shares must be transferred to a share premium account. This method of accounting is known as "acquisition accounting" and means that the pre-acquisition profits of Company A cannot be distributed by Company B. It is yet unclear as to whether Kenya courts will adopt the decision in Shearer v Bercain. The Kenya Companies Act does not provide "merger relief" that was introduced by the English Companies Act of 1981.
what is void contract
Question: (a) Explian the various stages that a Bill must go through before it becomes enforceable as a Law in Mauritius. (c) Mr. Vijay is the tenant of a house situated at
What are parliamentary procedures for passing legislation? Parliamentary procedure for passing legislation: A statute can simply be part of law while this has passed the
Criminal Appeal - District Magistrate's Court Therefore in Section 10(1) of the Magistrate's Courts Act gives that any person that who is convicted of an offence on the trial
PRESIDENT'S ASSENT: Under section 46(2) of the Constitution a Bill passed through the National Assembly must be presented to the President for his assent. However the Presid
The Judicature Act Cap 8, Laws of England: Therefore the sources of England law are specified in the Judicature Act 1967, S.3(1) of that states in which the jurisdiction of th
Impose a duty on directors: A company is, however, free to impose a duty on its directors to attend board meetings within a certain period of time and to prescribe the consequ
Group Accounts: Section 150 requires a company which has subsidiaries to lay before the company in general meeting accounts or statements dealing with the state of affairs an
Challenging an Arbitral Award Conversely a party dissatisfied through an arbitral award any challenge that it in the High Court and the High Court might set it aside whether i
Arbitral Award However the decision of the arbitral tribunal is referred to like an arbitral award. Therefore the terms of employment really require the arbitrator that must m
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd