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CS Professional · Corporate Restructuring, Valuation and Insolvency · Accounting in Corporate Restructuring: Concept and Accounting Treatment

Hari Ltd merged into Indu Ltd on 1 October 2025 under common control; the appointed date in the approved scheme is 1 April 2024. The common control existed since 1 January 2024. For the financial statements of Indu Ltd for the year ended 31 March 2026, from what date must the comparative information be restated as if the combination had occurred?

Comparatives are restated from the beginning of the preceding period presented, or from the date common control began if that is later. Appendix C treats the combination as if it occurred from then, regardless of the actual merger or court approval date.

  1. A1 April 2024 only, being the appointed date
  2. B1 October 2025, being the actual merger date
  3. CThe beginning of the preceding period presented, or the date common control began if laterCorrect
  4. DThe date of court approval in all cases

Explanation

Appendix C requires the financial information in the statements for prior periods to be restated as if the combination had occurred from the beginning of the preceding period presented, irrespective of the actual date, unless common control began later, in which case restatement runs from that date. Here the preceding period begins on 1 April 2024 and common control began earlier, so restating from 1 April 2024 results. The key rule is the beginning of the preceding period, or later control date.

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