AS 14 lays out specific treatment for Amalgamation

The necessity of a standard on Business Combinations in India assumes importance considering the fact that Indian companies are increasingly stretching their business in foreign countries for best-fit business combinations. At present in India, though the AS 14 lays out specific treatment for Amalgamation, it is not matching the global reporting standards requirements. So ICAI has converged the present standard AS 14 to Ind AS 103 Business combination which is in line with IFRS 3. The transition to Ind AS, as and when it happens, is likely to have impact on the accounts of companies involved in such acquisitions and mergers.


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