LOLC will not be recognizing any gain nor will LOCH recognize any goodwill.
LOCH will settle the above transaction value by issuing new shares amounting to Rs.41,105mn to LOLC and pay Rs.1,000mn in cash.
LOLC will derecognize it’s investment in LOFC, CLC and NIFL and recognize a new investment in LOCH amounting to Rs.41,105mn.
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Considering the third statement....
In the account book what will happen to 1000 million?