After applying push-down accounting, the parent's conceptual analysis of the Investment account would not show an excess cost element or a goodwill element.

Question

Quizplus · Accepted Answer

Push-down accounting involves revaluing the subsidiary's assets and liabilities to fair value on the subsidiary's books, eliminating the need for the parent to separately account for excess cost or goodwill in its investment account.

After Applying Push-Down Accounting, the Parent's Conceptual Analysis of the Investment