Push-down Accounting: A Comprehensive Case Study

Abstract

Push-down Accounting has gained great popularity over the last decade with the resurrection of acquisitions and the increased global expansion of business activities. The SEC recommends Push-down accounting, where appropriate, as it is an easier and more effective method of financial reporting than the complex structure of inter-company elimination entries. The ending reported consolidated amounts are also identical whether this method is used or not. This case study provides the criteria for Push-down and details an actual case study of its preparation and presentation of a balance Sheet on the date of acquisition.