ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
From the web's #1 provider of financial analysis / ratio
analysis FISCALIST is an economist who prefers that the
government affect the economy by raising and lowering taxation
and/or government spending. Learn new Accounting Terms PUSH-DOWN
ACCOUNTING, in acquisitions, is an exception to the general rule
that the acquiree's carrying values are unaffected by the
purchase may arise when substantially all of the acquiree's
shares are purchased by the acquirer. In that case, the acquirer
may direct the acquiree to revalue its assets in accordance with
the fair values attributed to those assets by the acquirer. This
practice is known as push-down accounting, because the fair
values are 'pushed down' to the acquiree's books. The net effect
is the same as if the acquirer had formed a new subsidiary,
which then purchased all of the assets and liabilities of the
acquiree. There are two advantages to push-down accounting: a.
The first is that the financial