Purchase Price Allocation

Purchase Price Allocation

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.

Why Baker Tilly Kuwait?

Baker Tilly Kuwait is distinguished by specialist professional experience and offers the following characteristics carrying added value to our clients as follows:

  • A global consulting firm with a local presence in the State of Kuwait;
  • Professional team with in-depth experience in providing investment consultancy services in Kuwait.

What are the services provided by Baker Tilly Kuwait?

Preparation of Purchase Price Allocation Report