Chapter 3 Section 8: Combined Financial Statements/Push Down Accounting Flashcards
1
Q
When are combined financial statements used?
A
When there is a group of related companies but no parent.
They are under common control or management, or are unconsolidated subsidiaries
2
Q
What is push down accounting?
A
It reports assets and liabilities at fair value in separate statements of the sub. Consolidation adjustments are pushed down into the records of each sub
