Push-down accounting is the establishment of a new accounting and reporting basis for an entity in its separate financial statements,based on a purchase transaction in the voting stock of the entity that results in a substantial change of ownership of the outstanding voting stock of the entity.

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Push-down accounting is a real concept, and it involves the establishment of a new accounting and reporting basis for an entity in its separate financial statements. It usually happens after a purchase transaction in the voting stock of the entity that results in a substantial change of ownership of the outstanding voting stock of the entity. With push-down accounting, a new accounting basis is established by the acquiring firm that reflects the assets and liabilities of the acquired entity at their fair values. This adjustment can significantly affect the acquired entity's financial reporting, so it's important to understand the push-down accounting process.

Push-Down Accounting Is the Establishment of a New Accounting and Reporting