In ASU 2014-17, issued in November 2014, "pushdown accounting" refers to the accounting treatment that allows an
acquiree to use the acquirer's bases in the preparation of the
acquiree's separate financial statements.
Upon completion of the transaction, the
acquiree shareholders collectively received a total of 151m shares of the issued and outstanding common stock of the company, representing approximately 88% of the total issued and outstanding stock of the company.
Even though the acquirer doesn't own 100% of the
acquiree, the purchaser writes the assets and liabilities of the
acquiree up or down to their full FMV as if it had been fully absorbed.
ASC 805 requires the acquirer to measure a noncontrolling interest in the
acquiree at its fair value at the acquisition date.
The acquirer is the entity that obtains control of the
acquiree.
Other Utah
acquirees describe important aspects of the phases, including completing a thorough, reality-based prehoneymoon due diligence and business plan.
Also, the value of a noncontrolling equity interest in the
acquiree will be recognized at its acquisition-date fair value.
In the acquisition method, the fair value of the
acquiree as a whole is determined and forms a basis for subsequent accounting measurements.
The ED states that all business combinations within its scope consist of an acquirer that obtains control over the operations of the
acquiree.
1992, Hambrick/Canella 1993, Krug/Hegarty 1997, Lubatkin/Scheiweger/Weber 1999, Walsh 1988), hostility of the acquisition (Barmash 1971, Ravenscraft 1987, Scherer 1986), poor pre-acquisition performance (Walsh/Ellwood 1991), and acquirers' need to establish control over the
acquiree (Fama/Jensen 1983).
The purchase method combines the net assets of the acquirer that remain at book value with the net assets of the
acquiree that are recorded at fair value.
White, the Examiner's editor and publisher since early this year, says that paper and its 210 newsroom employees for years have been buffeted by gossip that the Examiner would be sold, "so it feels good to be even rumored to be the acquirer rather than the
acquiree.
