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All news by: Brandon Thompson

Purchase Price Allocation (PPA) And When Do I Need One?

If you are in the process of acquiring a business or have recently acquired a business then you’ll need to know this information. It is likely that the purchase of a business includes an element of Goodwill (i.e. the purchase price is greater than the net assets you acquired). In these circumstances, the International Financial Reporting Standards (IFRS) require you to assess the fair value of assets acquired and liabilities assumed. This process is referred to as a Purchase Price Allocation (PPA). In this article, Moore Advisory Johannesburg takes a closer look at what a PPA is, who needs to perform one and when it needs to be performed.