The push-down accounting controversy
Article Abstract:
The acceptance or rejection of push-down accounting by corporations varies according to circumstances (such as the amount of outstanding debt incurred by the company and whether there has been a percentage change in company ownership). Push-down accounting methodologies restate a corporation's assets, liabilities and stockholders' equity, according to the stock valuations involved in the most recent change in corporate ownership (the carrying value of the stock to the most recent investor in the corporation). The use of push-down accounting results in capital enhancement and a stronger balance sheet, while simultaneously reducing the reported net income of the company. These effects of push-down accounting are illustrated through hypothetical examples, and the ethics and propriety of applying push-down in various situations are pursued.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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Capitalizing on excess pension assets
Article Abstract:
Michigan Metals Corporation is an example of a company where pension funds provoked management difficulties and provided solutions to the company's cash flow problems. The ratio of debt financing to capital assets did not allow the company to raise capital from additional external borrowings, so that improvements had to be financed from internal cash flow. Management, fearing a cash shortage for 1984, decided to use the cash flow from their pension plans' investments, which at that time was estimated as being overfunded. The solution was a review and revision of the pension plans after a consensus was reached between all interested parties; the plan revisions provided management with the needed capital.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Analyzing the profitability of branch banks
Article Abstract:
Decentralization within the banking industry, generally accomplished through branch banking, allows bank managers to make decisions rapidly, gives the management team greater control over the factors that affect their performance, facilitates long-term planning, and provides institutions with more (and better trained) managers. Branch banking operations should be accounted for as separate profit centers and evaluated according to returns on investment, as a two-pronged method of preventing bank failures. More profitable banking operations achieved through decentralization and delegation of authority are examined in detail.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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