Push-down accounting is concerned with the
A) impact of the purchase on the subsidiary's financial statements.
B) recognition of goodwill by the parent.
C) correct consolidation of the financial statements.
D) impact of the purchase on the separate financial statements of the parent.
E) recognition of dividends received from the subsidiary.

Question

Quizplus · Accepted Answer

Push-down accounting is a technique where the acquired company's assets and liabilities are marked to fair value and recorded by the acquiring company. This technique impacts the subsidiary's financial statements, including the balance sheet, income statement, and cash flow statement. Therefore, option A is the correct choice.

Push-Down Accounting Is Concerned with the