In applying push-down accounting, the offsetting entry for adjusting an asset upward to its current value is to the Retained Earnings account.

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In push-down accounting, when an asset's value is adjusted upward, the offsetting entry is typically made to an equity account specific to the revaluation, not directly to Retained Earnings. This approach reflects the increase in the entity's net assets from the perspective of the new parent company's basis in the subsidiary, without affecting the subsidiary's retained earnings directly.

In Applying Push-Down Accounting, the Offsetting Entry for Adjusting an Asset