FAR 3-8 Combined Financial statements/push down accounting

Question 1

Combined financial statements

Answer 1

of a group of related companies (not consolidated because there is no parent company).

Question 2

Types of Combined financial statements are

Answer 2

1. Companies are under common control
2. Companies are under common management
3. Unconsolidated subsidiaries

Question 3

Push down accounting

Answer 3

reports assets and liabilities at fair value in separate financial statements of the subsidiary. In effect, consolidation adjustments are pushed down into the records (and separate financial statements) of each subsidiary.