Which term refers to the practice of revaluing an acquired subsidiary's assets and liabilities to their fair values directly on that subsidiary's books at the date of acquisition?
A)Fair value accounting
B)Push-down accounting
C)Fully adjusted method
D)Reciprocal ownership

Question

Quizplus · Accepted Answer

Push-down accounting refers to the practice of revaluing an acquired subsidiary's assets and liabilities to their fair values directly on that subsidiary's books at the date of acquisition. This is in contrast to fair value accounting, which involves recognizing changes in fair value in the parent company's financial statements, and fully adjusted method, which involves adjusting both the parent company's and subsidiary's financial statements to reflect the acquisition. Reciprocal ownership refers to a situation in which two companies own each other's stock.

Which Term Refers to the Practice of Revaluing an Acquired