What is the difference between amalgamation and absorption?

Asked by Last Modified  

5 Answers

Learn Accountancy

Follow 12
Answer

Please enter your answer

Sandip Agarwal

Eco, Maths and Stats Tutor

Amalgamation is the process of two or more companies joining together to form a new one. Think of Maruti India and Suzuki Japan amalgamating to form Maruti Suzuki. Absorption is when one company acquires another company . No new company is formed. Think of Vodafone acquiring Hutch.
Comments
Dislike Bookmark

JU-IITKGP & 10+ years experienced for boards, JEE,NEET,OLYMPIAD & 5-12

Amalgamation is the process of two or more companies joining together to form a new one. Think of Maruti India and Suzuki Japan amalgamating to form Maruti Suzuki. Absorption is when one company acquires another company . No new company is formed. Think of Vodafone acquiring Hutch.
Comments
Dislike Bookmark

amalgamation is cosolidation of one or more entity to form form new entity while absorption is only merger of two compay no new company is created. amalgmation includes absorption
Comments
Dislike Bookmark

Tutor with 4 yrs of experience in accounting and economics

Amalgamation is the process whereby two or more companies joined together to form a new company whereas when one company amalgates in to another company is said to be absorption.
Comments
Dislike Bookmark

Amalgamantion also called erger is the joining together of two organizations/ companies. It is usually equaly footing. Both organizations togeter form a new entity. For example recently Vodafone India and Idea Cellular merged to form Vodafone Idea. Absorption on the otherhand is complete takeover of...
read more
Amalgamantion also called erger is the joining together of two organizations/ companies. It is usually equaly footing. Both organizations togeter form a new entity. For example recently Vodafone India and Idea Cellular merged to form Vodafone Idea. Absorption on the otherhand is complete takeover of one companyby another. The company taking over, remains and retains its identity while the company taken overno longer remains an entity. read less
Comments
Dislike Bookmark

View 3 more Answers

Related Questions

What will be the effect of change in income on giffin goods and normal goods ?
Giffen goods are a special kind of inferior products in which demand increases when price increases. But in the case of income changes, there's an inverse relationship between market and income. With an...
Suneha Sharma
0 2
View Comments7
difference b/w cash & cash eqivalant..
Cash is basically the money that is available with us in liquid form.And cash eqivalent are those items which can be converted into liquid form as and when required like fixed deposit ,they can be converted...
Madhav
What are the two government plans for school students?
1.Educational loan for higher education. 2. Compulsory education for all under the age 6 - 14 years 3.state and central government's scholarship scheme etc.
Rajkmar
I have registered as a home tutor but i am not getting any messages.
PLEASE take premium membership of UrbanPro you will definitely received home tuition enquiry.
Netti surya prakash Rao
0 0
View Comments6
What is the difference between Cash & Cash Equivalent?
1. Cash means Paper money , coins , Money order etc But, Cash Equivalent means Highly Liquidable Securities 2. Cash has not any Time period . It is Demand Receipt But , Cash Equivalent Take some time...
Madhav

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Introduction To Accounting: Part 4: Accounting Cycle
Remember when we started learning English? We started off by learning Alphabets, then we joined Alphabets to form Words, then we joined Words to form Sentences, then we joined Sentences to form Paragraphs,...

Nishant Kumar

0 0
View Comments0
Introduction To Accounting: Part 17: Dual Aspect Concept
There are always two aspects of a Business Transaction. Examples: Purchase of Machinery for Rs 50,000. The two aspects in this transaction are: Incoming of Machinery Outflow of...

Nishant Kumar

0 0
View Comments0
Be Exam Oriented while studying for the Exams
Examinations are the ultimate test of the student.Even if one is doing his/her best during school/college days and confidently handling any academic questions until unless he/she scores good marks in Exams/Tests...

Rabindra K.

0 0
View Comments0
Introduction To Accounting: Part 7: Accounting Principles
Just like we have Grammar in English Language, which is basically the rules of English, we have some rules for Accounting as well, known as Accounting Principles. Accounting Principles, Concepts and Conventions...

Nishant Kumar

0 0
View Comments0
Basics of Accounting_Chapter-1

Rahul Kumar Pugalia

0 0
View Comments0

Recommended Articles

The Trend of E-learning and it’s Benefits

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

How To Choose The Right School For Children?

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

Science, Arts Or Commerce - Which One To Go For?

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

5 Engaging Activities For Children To Get...

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

Find Class XI Tuition near you
Class XI Tuition in Delhi
Class XI Tuition in Bangalore
Class XI Tuition in Hyderabad
Class XI Tuition in Kolkata
Class XI Tuition in Mumbai
Class XI Tuition in Chennai
Class XI Tuition in Pune
Class XI Tuition in Gurgaon
Class XI Tuition in Noida
Class XI Tuition in Jaipur

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you