Fasb Position On Accounting For Bargain

AnswerPlease respond to the followingthe accounting profession has engendered much debate on the pros and cons of push- down accounting. Create an argument that push-down accounting provides the most relevant information to financial statement users. Provide support for your argument.Take a position for or against the FASB position on accounting for bargain acquisition, indicating the likelihood of bargain acquisition occurring in today’s economy. Push down Accounting is a method of accounting for mergers and acquisitions. The accounting of the purchase of a subsidiary is done at the purchase cost rather than its historical cost. This method of accounting is required under U.S. GAAP, but is not accepted in IFRS accounting standards. Since the subsidiary is consolidated into the parent company for financial reporting purposes, push down accounting appears the same on a firm's external financial reporting.The advantage of push down accounting is that the financial position and results of operations of the acquire will be reported on the same economic basis in both the consolidated statements and its own separate entity statements.Secondly the process of consolidation will be greatly simplified for the parent.From the management point of view, keeping the debt