“Accounting treatment under AS 14 is confined to Amalgamations unlike Ind AS 103.” Discuss how far Ind AS 103 can be distinguished with AS 14.

Ind AS-103 deals with accounting treatment in case of each and every kind of combinations unlike AS-14 that confine only to amalgamations. Even there are judicial pronouncements stating AS-14 is not applicable even for mergers. AS-14 describes two methods of amalgamation i.e. pooling of interests method and purchase method whereas Ind AS-103 prescribes only the acquisition method for each business combination. There is no amortisation of goodwill under Ind AS-103 but tested for impairment on annual basis as per Ind AS-36 but AS-14 requires goodwill to be amortised within a maximum period of five years. Reverse acquisitions are also dealt with under Ind AS-103 but not under AS-14. Under Ind AS-103, the consideration the acquirer transfers in exchange to the acquiree includes any asset or liability resulting from a contingent consideration arrangement but this aspect is not dealt with under AS-14.