What does push-down accounting refer to?
A)Writing down assets where value is impaired
B)Applying the lower of cost or market approach
C)Recording fair values on a subsidiary's books after a business combination
D)Recording all consolidation adjustments on the books of the subsidiary

Question

Quizplus · Accepted Answer

Push-down accounting refers to the practice of recording fair values on a subsidiary's books after a business combination. This is because the subsidiary becomes a new reporting entity and must reflect the fair value of its assets and liabilities as if it were being sold or revalued. This is different from consolidating financial statements, which involves making adjustments on the books of the parent company.

What Does Push-Down Accounting Refer To