In November 2014, the FASB issued ASU 2014-17, which became effective upon issuance. ASU 2014-17, which was codified into the push down accounting subsections of ASC 805-50, now provides both public and nonpublic entities with authoritative guidance on applying push down accounting.

Pushdown accounting, address the following:

• Describe the concept of a “controlling financial interest.”

• How does the acquiree elect push down accounting?

• What do you feel is the most important consideration to decide on before making the election?

Answer rating: 100% (QA)

Controlling finanacial interest THE MEANING OF CONTROL The issue of when a subsidiary is sufficiently controlled by a parent to merit consolidated financial reporting goes back many years see A Histor... View the full answer