In this article we will discuss about the accounting for reorganization of a company. Reorganization - Bankruptcy: Reorganization under the federal Bankruptcy Code is a way to salvage a company rather than liquidate it. Although the original owners of a company rescued in this way are often left without anything, others whose livelihoods depend on the company's fortunes may come [...]
Centuries ago in Italy the bankrupt merchant would be forced into an odd form of pillory. He would have the table he did business at in the town square broken. At least one source says the word bankruptcy derives from the Italian words for this practice, which translate to broken bench. A basic assumption of accounting is that a business [...]
The conditions precedent to buy-back, as laid down in Section 77A (2) of the Companies Act are:- (a) The company's article should authorise the buy-back. In case the articles are silent on this point, the same has to be amended to include a provision to that effect; (b) No company shall purchase its own shares or other specified securities unless [...]