The SEC requires push-down accounting for SEC filings of subsidiaries when the subsidiary has no substantial publicly-held debt or preferred stock outstanding and

Question

Quizplus · Accepted Answer

The SEC requires push-down accounting for SEC filings of subsidiaries when the subsidiary has no substantial publicly-held debt or preferred stock outstanding and the parent has substantial ownership (90% or greater). This is because control is typically considered to be present when a parent company owns at least 90% of the subsidiary's common stock.

The SEC Requires Push-Down Accounting for SEC Filings of Subsidiaries