The Securities and Exchange Commission requires the use of push-down accounting for SEC filings when a subsidiary is substantially wholly-owned with no substantial publicly held debt or preferred stock outstanding.

Question

Quizplus · Accepted Answer

This statement is true. The SEC requires the use of push-down accounting for SEC filings when a subsidiary is substantially wholly-owned with no substantial publicly held debt or preferred stock outstanding. This is because push-down accounting reflects the change in ownership and recognizes the subsidiary's assets and liabilities at fair value as if they were acquired in a purchase transaction.

The Securities and Exchange Commission Requires the Use of Push-Down