Pushdown Accounting Now Optional

The FASB recently decided to allow acquired entities and their subsidiaries to make an election to apply pushdown accounting. An acquired entity may wish to apply pushdown accounting in order to be able to report in its separate financial statements the fair value of its assets and liabilities as of the date it was acquired and to use that fair value as the starting point for accounting subsequent to a change-in-control.

As of November 18, an acquired entity can choose whether to implement pushdown accounting during the reporting period in which a change-in-control event occurred or to apply pushdown accounting as a change in accounting method as of the date of the most recent change-in-control event.

Learn more in our latest MHM Messenger.

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