Briefly explain the provisions regarding accounting treatment in the books of the transferee company on amalgamation where Indian Accounting Standard 103 (Business Combinations of Entities under Common Control) is applic

Accounting treatment in the books of the transferee company on amalgamation where Indian Accounting Standard 103 (Business Combinations of Entities under Common Control) is stated as under: All the assets and liabilities recorded in the books of Transferor Company shall be transferred to and vested in the books of Transferee Company pursuant to the scheme and shall be recorded by Transferee Company at their respective book values as appearing in the books of Transferor Company. The identified of the reserves of Transferor Company shall be preserved and they shall appear in the financial statements of Transferee Company in the same form and manner, in which they appeared in the financial statements of Transferor Company prior to this scheme being effective. The investments in the equity capital of Transferor Company as appearing in the financial statements of Transferee Company shall stand cancelled. Inter-company balances, loans and advances if any, will stand cancelled. In case of any differences in accounting policy between Transferor Company and Transferee Company, the accounting policies followed by Transferee Company will prevail and the difference till the appointed date shall be adjusted in capital reserves of Transferee Company, to ensure that the financial statements of Transferee Company reflect the financial position on the basis of consistent accounting policy. Subject to any corrections and adjustments as may, in the opinion of the Board of Directors of the Transferee Company, be required and except to the extent otherwise by law required, the reserves of the Transferor Company, if any, will be merged with the corresponding reserves of the Transferee Company.