Feb 04, 2015
From the Financial Reporting View
This edition of Issues In-Depth reports that the FASB recently issued a new standard that provides guidance on whether an acquired entity can apply pushdown accounting in its separate financial statements. The FASB’s Emerging Issues Task Force had previously approved the guidance. Now an acquired entity is allowed, but not required, to apply pushdown accounting upon acquisition by a new controlling parent. The new standard also includes specific guidance on how to account for goodwill, bargain purchase gains, and acquisition-related liabilities in the acquired entity’s financial statements.