FASB’s Rules for Pushdown Accounting

$219.00

SKU: 410668

Description

Gain a better understanding of the FASB guidance and when it should be used.
Companies prepare separate financial statements of their subsidiaries for various reasons, such as spinoffs, regulatory requirements, or compliance with debt covenants. Pushdown accounting establishes a new basis for reporting assets and liabilities in the acquirees separate financial statements based on a pushdown of the acquirers new bases. Pushdown typically results in stepping up the basis of assets and liabilities to fair value and recording goodwill in the acquirees financial statements. This course expounds on the fundamental concepts of pushdown accounting.

Date: 2023-08-23 Start Time: 1:00 PM ET End Time: 2:40 PM ET

Learning Objectives

* You will be able to describe pushdown accounting and its application to different types of business ventures.

* You will be able to discuss the reasons acquirers choose to push down their fair values to step up the basis of assets and liabilities in the acquirees financial statements.

* You will be able to explain the implications of pushdown accounting on different assets and liabilities.

* You will be able to review the disclosure requirements of pushdown accounting.

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

AIPB ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Josef Rashty, CPA-Josef Rashty, CPA