Question

As per AS-14 Purchase Consideration is what is payable to:

• A. Debenture holders and creditors
• B. Share holders and creditors
• C. Share holders and debenture holders
• D. Share holders

Answer 1

Answer:

D. Share holders

As per AS-14, Purchase consideration means, “the aggregate of the shares and other securities issued and the payment made in the form of cash or other assets by the transferee company to the shareholders of the transferor company”.