Purchase Solution

push down accounting method

Not what you're looking for?

Ask Custom Question

Why and when does the SEC require the use of the push down accounting method? Given an example.

Purchase this Solution
Solution Summary

Push down accounting method is discussed in great detail in this solution. Why and when does the SEC require the use of the push down accounting method is determined.

Solution Preview

Why and when does the SEC require the use of the push down accounting method?
The SEC requires that debt should be pushed down if "(1) [Target] is to assume the debt of [Holding,] either presently or in a planned transaction in the future; (2) the proceeds of a debt or equity offering of [Target] will be used to retire all or a part of [Holding's] debt; or (3) [Target] guarantees or pledges its assets as collateral for [Holding's] debt." SEC Staff ...

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • Push-down accounting, equity method, partial equity method

    107533 Push-down accounting, equity method, partial equity method 8. Push-down accounting is concerned with the A) impact of the purchase on the subsidiary's financial statements. B) recognition of goodwill by the parent.

  • Accounting/Business Analysis/Financial Reporting

    What is push-down accounting? A method of accounting wherein the financial report of the subsidiary reflects the parents cost incurred in acquiring the sub. Under what conditions is push-down accounting considered appropriate?

  • Push-Down Accounting Practices

    401919 Push-Down Accounting Practices What is push-down accounting? What is FASB's position regarding Push down accounting. What is push down accounting?

  • Eliminating Entries with Negative Goodwill and Push-Down Accounting

    Present any entries that would be made on Louis's books related to the business combination, assuming push-down accounting is used. In push down accounting the assets and liabilities are revalued at fair value based on the purchase price.

  • Advanced Purchase/consolidation Problem

    (a) Non-push-down accounting means that we don't touch subsidiary's books and make adjustments to the fair value and record Goodwill.

  • Inventory Management Decision Model

    An increase in demand will push the total inventory cost up while a decrease in demand will push the total inventory cost down from the current level. 2.

  • Professional Issues in Computing - Customer Malfeasance

    In tracking down the problem, you realize that the reason the customer has a problem is that they are trying to make your program (written with due respect for accounting standards) support their false accounting procedures.

  • Decision Case: Gap Inc.'s Inventory Note

    What factors does it take into accounting in deciding whether to write down its inventory?

  • Taxation Case Brief

    The commissioner had the authority to ask TPTC to change its method of accounting for tax purposes. The IRC Sec 471 says that inventory method must confirm to the best accounting practices an must reflect income.

View More Related Solutions