09-29-2003, 02:20 AM
Hi Irfan!
Net assets means assets less liabilities that are being acquired by the purchaser. Whether they are total assets less liabilities of the vendor or selected assets less liabilities, does not really matter.
Purchaser is only concerned with what he acquired. He cann't book what he never purchased.
IAS applies to both of them. It makes no distinction in this respect.
Actually the very reason for asset purchase is that buyer can be selective (buy some asset ignore others). Whereas in case of share purchase, the buyer ends up with all the assets and liabilities (if 100% share purchase) or a percentage of all assets and liabilities (if less than 100% purchase).
Take Care.
Edited by - Pervez on Sep 28 2003 94032 PM
Net assets means assets less liabilities that are being acquired by the purchaser. Whether they are total assets less liabilities of the vendor or selected assets less liabilities, does not really matter.
Purchaser is only concerned with what he acquired. He cann't book what he never purchased.
IAS applies to both of them. It makes no distinction in this respect.
Actually the very reason for asset purchase is that buyer can be selective (buy some asset ignore others). Whereas in case of share purchase, the buyer ends up with all the assets and liabilities (if 100% share purchase) or a percentage of all assets and liabilities (if less than 100% purchase).
Take Care.
Edited by - Pervez on Sep 28 2003 94032 PM
