5% Fees donated to charity
5% Fees donated to charity
When a business is acquired, accounting standards such as IFRS 3, UK GAAP (FRS 102) and (ASC 805) US GAAP require the purchase consideration to be allocated across the identifiable assets and liabilities acquired. This process - known as a Purchase Price Allocation (PPA) establishes the fair value of tangible and intangible assets and determines the goodwill arising on consolidation. The resulting allocation underpins the post-acquisition balance sheet, providing the basis for subsequent amortisation and detailed financial statement disclosures.
A well executed PPA helps explain the real drivers of value behind your acquisition, supports your deal rationale and ensures your financial statements, resulting disclosures and goodwill calculations withstand audit review as well as provide stakeholders with key information in order to make crucial decisions (such as where to invest further and where to divest).
A PPA is typically performed shortly after closing the transaction, while management, records and forecasts remain intact and accessible.
That said, many acquirers now perform pre-deal / preliminary PPA analyses during due diligence to help understand value gaps and structure the deal more intelligently.
US GAAP (ASC 805) specific considerations
Timing: under ASC 805 the acquirer must allocate the acquisition date fair values; measurement period may apply under IFRS, but under US GAAP the measurement period is more constrained.
Disclosure: ASC 805 has specific disclosure requirements around intangible assets, acquisition-related costs, etc.
IFRS 3 allows a measurement period of up to 12 months after the acquisition date to finalise the PPA entries and goodwill calculation.
Cross-border: If a UK entity is acquired by a US parent or vice-versa, you’ll need both UK/IFRS and US-GAAP compliant workstreams - we handle both.
In practice, many businesses revisit or commission a PPA well after that period - often one to three years later to support audits, refinancing or regulatory reviews where earlier records were incomplete or valuations need to be refreshed.
We identify and value assets across areas such as:
Our valuations follow the recognition principles of IFRS 3 (and IAS 38 / FRS 102 for identifiable intangible assets) to ensure full compliance and audit transparency.
Our PPA valuations provide clarity, control and accountability for all stakeholders. We tailor reports and deliverables to suit:
At DMP Accountants & Valuations Ltd we combine digital efficiency with consultancy rigour to deliver audit-ready PPA (Purchase Price Allocation) reports under IFRS 3, FRS 102 and ASC 805 (US GAAP).
Our process is clear, structured and tailored to your transaction timeline.
Our approach includes:
What this means for you:
You get a defendable, high-quality PPA report that supports your acquisition, satisfies auditor scrutiny and gives meaningful insight into the drivers of value behind the deal. We deliver this with the responsiveness and service-orientation of a boutique adviser, but at a national-online firm scale.
A PPA isn’t just a formality - it’s an accounting requirement under IFRS 3, FRS 102 & ASC 805 (US GAAP) that evidences how value is created and recognised in an acquisition.
For a tailored valuation quote, please contact us with your details and of the PPA requirement and we’ll scope your PPA clearly and efficiently.
Our valuations ensure transparent, defendable reporting that stands up to audit combined with cost-effective pricing, and we’re confident our rates remain among the most competitive in the UK.
Please reach us at contact@dmp-accountants.co.uk if you cannot find an answer to your question.
Standard turnaround is around four weeks from receipt of information. For urgent cases or audit deadlines, we offer a fast-track option of one to two weeks.
Yes, we can prioritise urgent PPA engagements where reporting deadlines are tight, subject to availability. Urgent work is priced accordingly, though we always aim to remain cost-effective. We have completed assignments within two weeks and can accommodate shorter turnarounds where required.
We can factor contingent consideration and re-measure within the IFRS 3 measurement period.
If changes occur within the 12-month measurement period, adjustments are permitted under IFRS 3. In practice, we often find earlier PPAs may have missed certain items - these can still be adjusted within that period; after 12 months, revisions must be treated as new estimates or corrections rather than acquisition adjustments.
We apply the recognition and measurement principles of each framework and, where relevant, explain the key differences in our reports to highlight the underlying accounting rationale.
Yes. Our reports are prepared to audit-ready standards, and we liaise directly with auditors where required - addressing technical queries and supporting both management and the audit team to ensure the PPA is concluded efficiently.
We provide a tailored request list at the start. As an example, this usually includes;
These are the basics; further information may be requested depending on the specifics of the deal.
UK accountants providing valuation, tax and business advisory services with precision and integrity.
Serving clients across the UK and overseas, including Wakefield, Leeds, Manchester and London.
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