Pushdown accounting

Pushdown accounting is the process of using the acquiring entity's basis of accounting to prepare the financial statements of the acquired entity. This means that the assets and liabilities of the acquiree are updated to their fair values as of the acquisition date. These changes appear in the financial statements of the newly-acquired entity.

Pushdown accounting is not required for entities that are not registrants with the Securities and Exchange Commission (i.e., public entities).