SEC Staff Releases Accounting Bulletin to Update Guidance on Pushdown Accounting

Washington D.C., Nov. 18, 2014

The Securities and Exchange Commission´s Office of the Chief Accountant and Division of Corporation Finance today released a Staff Accounting Bulletin (SAB) to rescind portions of the interpretive guidance included in its SAB Series for what´s known as pushdown accounting. 

In order to reflect private sector developments in U.S. Generally Accepted Accounting Principles, the SEC´s Staff Accounting Bulletin No. 115 rescinds SAB Topic 5.J. entitled New Basis of Accounting Required in Certain Circumstances.  The new bulletin brings existing guidance into conformity with Accounting Standards Update No. 2014-17 — Business Combinations (Topic 805): Pushdown Accounting, a consensus of the FASB Emerging Issues Task Force, which was ratified by the Financial Accounting Standards Board (FASB) on Oct 8, 2014.

The statements in SABs are not rules or interpretations of the Commission nor are they published as bearing the Commission´s official approval.  They represent interpretations and practices followed by the Division of Corporation Finance and the Office of the Chief Accountant in administering the disclosure requirements of the federal securities laws.

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Fact Sheet

Prior Guidance

New Guidance