(1) The merger method of accounting is as follows.
(2) The assets and liabilities of the undertaking acquired shall be brought into the group accounts at the figures at which they stand in the undertaking's accounts, subject to any adjustment authorised or required by these Regulations.
(3) The income and expenditure of the undertaking acquired shall be included in the group accounts for the entire financial year, including the period before the acquisition.
(4) The group accounts shall show corresponding amounts relating to the previous financial year as if the undertaking had been included in the consolidation throughout that year.
(5) There shall be set off against the aggregate of -
(a) the appropriate amount in respect of shares issued by the undertakings dealt with in the group accounts as part of the arrangement referred to in Regulation 20 (1) (b) in consideration for the acquisition of shares in the undertaking acquired, and
(b) the fair value of any other consideration f