Idly and Sambhar

Introduction:  The accounting terminology of „Amalgamation‟ is derived from the term „Amalgam‟ which means to unite. In corporate environments also two entities unite and form a single entity. Important Terms Transferor Company: Company which is amalgamated into another company Transferee Company: Company into which Transferor Company would amalgam. Types and Method of Accounting In general, there are two types of amalgamation and method of accounting, they are:       Nature of Amalgamation                                       Method of Accounting Merger                                                                  Pooling of Interest method Purchase                                                               Purchase method Amalgamation in nature of merger In the event of two entities coming together. If all five conditions stated in AS 14 are fulfilled it is treated as amalgamation in nature of merger. The conditions are as follows: All the assets and