Purchase Price Allocation (PPA) is a crucial step in the financial reporting process following a merger or acquisition. It entails determining the fair value of tangible and intangible assets as well as assumed liabilities, with the objective of deriving residual goodwill. By accurately allocating the purchase price, PPA aims to provide a transparent and comprehensive view of the acquired entity’s financial position, ensuring adherence to accounting standards and regulations.
What are the governing references that companies are required to submit Reports on Purchase Price Allocation?
The International Financial Reporting Standard (IFRS) 3 “Business Combinations” requires all acquisitions to be recorded under the ‘Acquisition Method’ and hence, a Purchase Price Allocation (the “PPA”) exercise should be performed.
What is the added value to business entities from the Purchase Price Allocation Service?
- Provide clarity on the true value of acquired assets and liabilities, enhancing transparency in financial reporting and decision-making.
- Unlock hidden value, driving long-term growth and profitability.
- Compliance with accounting standards and regulatory requirements of the IFRS.
What are the services provided by Baker Tilly Kuwait?
Preparation of Purchase Price Allocation Report
Why Baker Tilly?
- Baker Tilly in Kuwait is a member of Baker Tilly International network based in the UK, ranked amongst the top 10 global accounting networks.
- Extensive experience in providing Purchase Price Allocation service to companies operating across various business sectors in the State of Kuwait.
- Highly experienced bilingual team with specialized academic qualifications and professional certifications.
- Commitment to performing Purchase Price Allocation engagements according to predefined timelines with no delays, and responsiveness to client requirements.