{"id":52754,"date":"2024-04-15T23:43:55","date_gmt":"2024-04-15T23:43:55","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52754"},"modified":"2024-04-15T23:43:55","modified_gmt":"2024-04-15T23:43:55","slug":"the-accounting-standard-related-to-amalgamation-of-company-is","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-accounting-standard-related-to-amalgamation-of-company-is\/","title":{"rendered":"The accounting standard related to amalgamation of company is"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97f27815a7c\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    AS-14                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    AS-20                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    AS-16                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    AS-12                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. AS-20<\/strong><\/p>\n<p>AS-20 is an Indian accounting standard that deals with amalgamation of companies. It was issued by the Institute of Chartered Accountants of India (ICAI) in 2003. The standard provides guidance on the accounting treatment of amalgamations, including the recognition and measurement of assets, liabilities, and income and expenses.<\/p>\n<p>AS-20 defines amalgamation as &#8220;the merger of two or more companies into one, with the resulting company being a continuation of one of the amalgamating companies.&#8221; The standard applies to all amalgamations, regardless of the form of the amalgamation, such as a merger, consolidation, or absorption.<\/p>\n<p>Under AS-20, the assets, liabilities, and income and expenses of the amalgamating companies are recognized and measured at fair value at the date of amalgamation. The fair value of an asset or liability is the price that would be paid to acquire the asset or liability in an arm&#8217;s-length transaction between knowledgeable, willing parties.<\/p>\n<p>The standard also provides guidance on the treatment of goodwill and negative goodwill arising from an amalgamation. Goodwill is an asset that arises when the fair value of the net assets acquired in an amalgamation exceeds the consideration transferred. Negative goodwill is a gain that arises when the consideration transferred in an amalgamation exceeds the fair value of the net assets acquired.<\/p>\n<p>AS-20 is a comprehensive standard that provides detailed guidance on the accounting treatment of amalgamations. It is an important standard for all accountants who are involved in the preparation or audit of financial <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" 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YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The accounting standard related to amalgamation of company is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-accounting-standard-related-to-amalgamation-of-company-is\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The accounting standard related to amalgamation of company is\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on 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