Purchase Price Allocation

Related to the concept of goodwill accounting is purchase price allocation (PPA) whereby international accounting standard boards require public companies and large private companies that, when carrying out an acquisition, allocate the purchase price into various assets and liabilities acquired from the transaction.

The process of PPA sets the stage for the ongoing requirement of goodwill impairment testing so it is important that the PPA is prepared properly at the time of the transaction as required.

The Evans & Evans team can work with management to assist with its range of requirements for purchase price allocation, goodwill and impairment testing and all other aspects of goodwill accounting.