Please can anyone offer advice -
We have two UK subsidiaries, let's say A and B, which are both 100% owned by the UK parent entity. We have decided, for business / operational purposes, to merge the trading activities of A and B in to one merged entity. Entity B will effectively acquire the assets and liabilities of entity A. Post-merger, entity B will continue trading, whilst entity A will continue to exist as a dormant entity.
My questions are
(1) do we need to revaluate the assets of entity A at the merge date?
(2) Is any purchase price consideration paid by any one entity to another?
(3) How do we account for the share capital in entity A, which is 100% owned by the common parent?
Thanks for any advice, Martin