Issues In-Depth   |   February 2015

Pushdown accounting

Filed under: Broad transactions, Business combinations

KPMG’s insights on ASU 2014-17, which impacts business combinations accounting.KPMG provides guidance on understanding and applying the new pushdown accounting standard in a business combination (ASC 805) when there is a new controlling parent.


ASU 2014-17

  • Company over which another company obtains control — i.e. the acquiree

Relevant dates

  • Effective immediately

Key impacts

  • Companies have the option to apply pushdown accounting upon a change-in-control event
  • Companies should consider the information needs of those that use the acquired entity’s separate financial statements and whether it is practical to keep two sets of accounting records for the acquired entity
  • The lower threshold makes pushdown accounting available in circumstances not permitted by previous SEC guidance
  • Companies that elect pushdown accounting should consider the disclosure requirements in FASB ASC Topic 805

Report contents

  • Understanding the new standard, including effective dates
  • How to apply the new standard




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