Which method of purchase consideration is the most suitable for amalgamation in the nature of merger?

1. Pooling of Interests Method: This method is followed in case of an amalgamation in the nature of merger. Under this method, the assets, liabilities and reserves of the transferor company are recorded by the transferee company at their existing carrying amounts and in the same form as at the date of the amalgamation.

How the purchase consideration is calculated in the case of amalgamation in the nature of merger?

Net Assets Method:

Under this Method, purchase consideration is ascertained by aggregating the agreed values of only those assets which have been taken over by the transferee company and deducting it from the agreed value of liabilities taken over.