Push-Down Accounting – Deferred Cost

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    I have a question on push-down accounting that I was hoping someone can help clarify. I work for a company that is a subsidiary of another one. I’ve been tasked with reconciling the deferred cost account. There was a push-down entry that credited a large chunk of the deferred invoices and moved them to intangibles. That part confused me. My understanding of push-down is that you assess the balance sheet to fair value for the subsidiary. This part of moving the deferred cost to intangibles is a bit odd to me. Those costs are third party installation services that our company outsources. We recognize those costs as we recognize revenue.


    thanks !

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