Concept of Amalgamation:
Amalgamation refers to the combination of two or more companies into a single entity, where one of the companies survives and the others lose their identity. The new entity formed as a result of the amalgamation is known as the amalgamated company. The amalgamation of two or more companies is done with the objective of achieving economies of scale, increasing market share, or gaining access to new markets.

Accounting Treatment for Amalgamation:
The accounting treatment for amalgamation involves the following steps:

1. Determination of Purchase Consideration:
The purchase consideration is the amount of money paid by the acquiring company to the acquired company for acquiring its assets and liabilities. The purchase consideration can be paid in the form of cash, shares, or a combination of both. The purchase consideration is determined based on the net assets of the acquired company and the market value of its shares.

2. Recording of Assets and Liabilities:
The assets and liabilities of the acquired company are recorded at their fair values at the date of amalgamation. Any difference between the fair value of assets and liabilities and their book value is recorded as goodwill.

3. Recording of Goodwill:
Goodwill is the amount paid by the acquiring company in excess of the net assets of the acquired company. Goodwill is recorded as an intangible asset in the books of the amalgamated company. Goodwill is not amortized but is subject to impairment testing annually.

4. Treatment of Reserves:
The reserves of the acquired company are transferred to the books of the amalgamated company. The reserves are treated as capital reserves and cannot be distributed as dividends.

5. Treatment of Shares:
The shares of the acquired company are cancelled, and the shareholders are issued shares in the amalgamated company in exchange for their shares in the acquired company.

In conclusion, the accounting treatment for amalgamation involves the determination of purchase consideration, recording of assets and liabilities, recording of goodwill, treatment of reserves, and treatment of shares. Amalgamation is a complex process that requires careful consideration of the financial, legal, and strategic implications.