Which statement is true with respect to push-down accounting?
a. IFRS permits the use of push-down accounting.
b. IFRS does not permit the use of push-down accounting.
c. SEC accounting does not permit the use of push-down accounting.
d. Both SEC accounting and IFRS permit the use of push-down accounting.
Answer:B
Choice “A” is incorrect because IFRS does not permit the use of push-down accounting.
Choice “B” is correct because IFRS disallows the use of push-down accounting.
Choice “C” is incorrect because the SEC requires the use of push-down accounting in certain circumstances.
Choice “D” is incorrect because IFRS disallows the use of push-down accounting.
