Combined Financial Statement / Push Down Accounting

Question 1

What types of companies may have combined FS?

Answer 1

• Companies under common control
• Companies under common mgmt
• Unconsolidated subsidiaries are combined

Question 2

What is required for combined FS?

Answer 2

1. Elimination of intercompany transactions/balances among companies
2. NCI, etc., be treated like consolidated FS
3. Capital stock and RE be added accross, not eliminated
4. IS be added across

Question 3

Push down accounting

Answer 3

Reports assets and liabilities at FV in separate FS of sub.

Effect: consolidation adjustments are pushed down into records of sub

Question 4

When does the SEC require push down accounting?

Answer 4

For each substantially wholly-owned sub

Question 5

How are different fiscal periods and foreign operations treated in combined FS?

Answer 5

In the same way as consolidated FS