CA INTER CAPSULE | SEP 2026 | Amalgamation Under AS 14 Explained | Introduction to Amalgamation

Accounting for Amalgamation starts with understanding the role of AS 14 (Accounting Standard 14). In every amalgamation, two companies are involved: ✅ Purchasing Company – the company acquiring the business ✅ Vendor Company – the company whose business is acquired One important point for students: AS 14 mainly focuses on the accounting treatment in the books of the Purchasing Company. The Vendor Company's books are generally closed as per normal accounting practices and are not specifically governed by AS 14. Two common forms of amalgamation: 1️⃣ Two existing companies combine to form a new company. 2️⃣ One existing company acquires another existing company. Whether A Ltd. and B Ltd. form C Ltd., or K Ltd. acquires L Ltd., both situations are treated as amalgamation and follow the same accounting framework. #CAInter #CAStudents #AccountingForAmalgamation #AS14 #AdvancedAccounting #CAExamPreparation #AccountingStandards #CACoaching #CommerceStudents #FinanceEducation #CAClasses #AccountsMadeEasy #CompanyAccounts #Amalgamation #PurchasingCompany #VendorCompany #May2027 #CAFoundation #CAIntermediate #SAGC