Affiliation:
1. International Management Institute, Delhi, India
2. Indian Institute of Management, Shillong, India
3. Jagannath International Management School, India
Abstract
In the business growth models in the corporate scenario, mergers and acquisitions is the key buzzword. Entrepreneurs with a paucity of cash balance and various motives for their poor performance are key targets of mergers. Consolidation of the market share at times leading to competitive advantage with inorganic opportunities to growth seems to be the pace of the era. When it comes to financial consolidation, balance sheet analysis plays a complicated role. In order to improve reliability, relevance in business combinations, IND-AS103 plays a vital role. IND-AS is applicable to the companies with a net worth of Rs 250 Crs, otherwise companies GAAP is applicable. An attempt has been made by the authors through the Idea and Vodafone merger explaining the recognition of identifiable assets, liabilities assumed, and the NCI (non-controlling interest) as per the guidelines of IND-AS103. Through a case, the authors have emphasized the recognition of goodwill acquired in the entrepreneurial enterprise derived from the bargain price.
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