FASB Endorses ‘Pushdown Accounting’ Opposed by Banking Regulators, Other Items

New rules that would expand the use of “pushdown accounting” over the objections of banking regulators have been endorsed by the Financial Accounting Standards Board.

FASB voted 5-2 to ratify final guidance with an option to carry out pushdown accounting, a form of post-acquisition reporting (Issue No. 12-F). Board members Marc Siegel and Thomas Linsmeier plan to formally dissent on the guidance, which is built on the collective view of FASB’s Emerging Issues Task Force.

Other Items Approved.

At its Oct. 8 meeting, FASB also ratified another item of final EITF-derived guidance on certain hybrid financial instruments that have traits ...