FASB: Guidance on pushdown accounting

FASB: Guidance on pushdown accounting

The FASB recently issued a new standard that provides guidance on whether an acquired entity can apply pushdown accounting in its separate financial statements.

Related content

The FASB's Emerging Issues Task Force had previously approved the guidance.

Now an acquired entity is allowed, but not required, to apply pushdown accounting upon acquisition by a new controlling parent. The new standard also includes specific guidance on how to account for goodwill, bargain purchase gains, and acquisition-related liabilities in the acquired entity's financial statements.


Read a February 2015 report [PDF 650 KB] prepared by KPMG LLP: Issues In-Depth: FASB Issues Guidance on Pushdown Accounting

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform