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.

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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

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