TaxTMI 
TaxTMI 
When a existing company under a commencement of liquidation acquired through e-auction as going concern, how such acquisition to be accounted for Non-Ind AS Client, as AS 14 deals with Amalgations only?., the company's status is active from liquidation status, and it is same company no formation of new company...wether the existing assets to be recorded at new fair value?.. pls guide.
Accounting for Business Purchase as Going Concern under E-Auction
24 Mar 2026 
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Going concern acquisition under liquidation requires fair value accounting, fresh financial position, and exclusion from internal reconstruction.
Acquisition of a company under liquidation through e-auction as a going concern is treated in substance as a business acquisition, not an amalgamation under AS 14. The assets and liabilities are recognised at fair value or estimated realisable value, with excess consideration treated as goodwill and surplus net assets credited to capital reserve. The transaction is not internal reconstruction; the revived entity should show a fresh financial position, with pre-liquidation reserves and losses not carried forward and proper disclosures under AS 1. Transfer of a business as a going concern is also described as an exempt supply for GST, subject to going concern conditions. (AI Summary)
Acquisition of a company under liquidation through e-auction as a going concern is treated in substance as a business acquisition, not an amalgamation under AS 14. The assets and liabilities are recognised at fair value or estimated realisable value, with excess consideration treated as goodwill and surplus net assets credited to capital reserve. The transaction is not internal reconstruction; the revived entity should show a fresh financial position, with pre-liquidation reserves and losses not carried forward and proper disclosures under AS 1. Transfer of a business as a going concern is also described as an exempt supply for GST, subject to going concern conditions. (AI Summary)