PUSH-DOWN ACCOUNTING

Push-Down Accounting

Push-Down Accounting

I strongly support the use of push-down accounting. Push-down accounting, also called new basis accounting, is an accounting system in which separate financial statements are prepared for acquired, subsidiary companies that are either wholly or partially owned (the ownership has to be equal to or greater than 90 percent). Under this accounting system, an acquired company retains its separate corporate existence and its liabilities and assets are restated to their fair values at the date of acquisition. Simply put, push-down accounting uses the acquired entity's basis of accounting to prepare the financial statements of the acquired entity (Bragg, ...