Comment on the following: Applicability of Accounting Standard (AS) - 14 for amalgamation.

Accounting Standard (AS)-14 recognizes two types of amalgamation: Amalgamation in the nature of merger. Amalgamation in the nature of purchase. This standard does not deal with cases of acquisitions which arise when there is a purchase by one company (acquiring company) of the whole or part of the shares, or the whole or part of the assets, of another company (acquired company) in consideration by payment in cash or by issue of shares or other. Securities in the acquiring company or partly in one form and partly in the other. The distinguishing feature of an acquisition is that the acquired company is not dissolved and its separate entity continues to exist.