PPT: Amalgamation | Advanced Accounting for CA Intermediate PDF Download

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MEANING OF AMALGAMATION
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MEANING OF AMALGAMATION MEANING OF AMALGAMATION
? The combination of one or more companies into a new 
entity.
? During amalgamation, two or more companies willingly 
come together to cooperate with each other and diversify 
(expand) their business activities.
? After amalgamation, two or more companies dissolve and 
lose their individual existence, hence they no longer exist 
anymore. However, they again re-establish themselves, but 
now jointly, by forming a new company having a unique 
name.
? Thus, amalgamation results in the formation of a new 
(separate) company which has a unique name, logo, 
identity and existence.
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MEANING OF AMALGAMATION MEANING OF AMALGAMATION
? The combination of one or more companies into a new 
entity.
? During amalgamation, two or more companies willingly 
come together to cooperate with each other and diversify 
(expand) their business activities.
? After amalgamation, two or more companies dissolve and 
lose their individual existence, hence they no longer exist 
anymore. However, they again re-establish themselves, but 
now jointly, by forming a new company having a unique 
name.
? Thus, amalgamation results in the formation of a new 
(separate) company which has a unique name, logo, 
identity and existence.
EXAMPLE
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MEANING OF AMALGAMATION MEANING OF AMALGAMATION
? The combination of one or more companies into a new 
entity.
? During amalgamation, two or more companies willingly 
come together to cooperate with each other and diversify 
(expand) their business activities.
? After amalgamation, two or more companies dissolve and 
lose their individual existence, hence they no longer exist 
anymore. However, they again re-establish themselves, but 
now jointly, by forming a new company having a unique 
name.
? Thus, amalgamation results in the formation of a new 
(separate) company which has a unique name, logo, 
identity and existence.
EXAMPLE EXAMPLES
Two good examples of amalgamations are as follows:
? Maruti Motors operating in India and Suzuki based 
in Japan amalgamated to form a new company 
called Maruti Suzuki (India) Limited.
? Tata Sons operating in India and AIA Group based 
in Hong Kong amalgamated to form a new 
company called TATA AIG Life Insurance.