Push Down Accounting

In accounting for mergers and acquisitions, the convention of accounting of the purchase of a subsidiary at the purchase cost rather than its historical cost. This method of accounting is required under U.S. GAAP, but is not accepted in IFRS accounting standards. Since the subsidiary is consolidated into the parent company for financial reporting purposes, push down accounting appears the same on a firm's external financial reporting.

It is sometimes helpful to think of push down accounting is as if a new company were started using borrowed funds. Both the debt, as well as the assets acquired, are recorded as part of the new subsidiary.

From a managerial perspective, keeping the debt on the subsidiary's books helps in judging the profitability of the acquisition. From a tax and reporting perspective, the advantages or disadvantages of push down accounting will depend on the details of the acquisition, as well as the jurisdictions involved.


Investment dictionary. . 2012.

Look at other dictionaries:

  • push down accounting — The practice in the USA of incorporating the fair value adjustments on acquisition, including goodwill, made by the acquiring company into the financial statements of the acquired subsidiary …   Accounting dictionary

  • Push, Nevada — Format Mystery Created by Ben Affleck Sean Bailey Matt Damon Chris Moore …   Wikipedia

  • Federal takeover of Fannie Mae and Freddie Mac — Fannie Mae headquarters at 3900 Wisconsin Avenue, NW in Washington, D.C. The federal takeover of Fannie Mae and Freddie Mac refers to the placing into conservatorship of government sponsored enterprises Fannie Mae and Freddie Mac by the U.S.… …   Wikipedia

  • LIFO — is an acronym which stands for last in, first out. In computer science and queueing theory this refers to the way items stored in some types of data structures are processed. By definition, in a LIFO structured linear list, elements can only be… …   Wikipedia

  • History of general purpose CPUs — The history of general purpose CPUs is a continuation of the earlier history of computing hardware. 1950s: early designs Each of the computer designs of the early 1950s was a unique design; there were no upward compatible machines or computer… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

  • Canada — /kan euh deuh/, n. a nation in N North America: a member of the Commonwealth of Nations. 29,123,194; 3,690,410 sq. mi. (9,558,160 sq. km). Cap.: Ottawa. * * * Canada Introduction Canada Background: A land of vast distances and rich natural… …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.