Companies prepare separate financial statements of their subsidiaries for various reasons, such as spin-offs, regulatory requirements, or compliance with debt covenants.

Pushdown accounting establishes a new basis for reporting assets and liabilities in the acquiree's separate financial statements based on a pushdown of the acquirer's new bases. Pushdown typically results in stepping up the basis of assets and liabilities to fair value and recording goodwill in the acquiree's financial statements.

This course expounds on the fundamental concepts of pushdown accounting.What You'll Learn:Pushdown Accounting

• Definition
  
• Election

Definition of Fair Value

Types of Investments

• Fair Value Method (ASC 321)
  
• Equity Method and Joint Ventures (ASC 323)
  
• Asset Acquisition (ASC 805)
  
• Business Combination (ASC 805)

Implication of Pushdown Accounting

• Obtaining Control of a Business
  
• ASU 2014-17
  
• Reasons for Pushdown Accounting
  
• Example

Pushdown Accounting Mechanism

• Pushdown Election
  
• Goodwill and Negative Goodwill
  
• Acquisition-Related Liabilities
  
• Contingent Considerations
  
• Deferred Revenue Liabilities
  
• Income Taxes
  
• Acquisition-Related Costs
  
• Foreign Currency Translation

Disclosures

• Presentation of Predecessor and Successor
  
• Example of Disclosures

Summary and Conclusion