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    push down accounting method

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

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    https://brainmass.com/business/accounting/push-down-accounting-method-355986

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    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 ...

    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.

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