5% Fees donated to charity
5% Fees donated to charity
When you buy a business, IFRS 3 or FRS 102 requires you to allocate the purchase price across the assets and liabilities acquired. This process, known as Purchase Price Allocation (PPA), determines goodwill and provides a fair value to the underlying assets, both tangible and intangible assets within the acquired business/segment.
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.
IFRS 3 allows a measurement period of up to 12 months after the acquisition date to finalise the PPA entries and goodwill calculation.
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:
A PPA isn’t just a formality - it’s an accounting requirement under IFRS 3 and FRS 102 that evidences how value is created and recognised in an acquisition.
Our valuations ensure transparent, defendable reporting that stands up to audit. Request a consultation and we’ll scope your PPA clearly and efficiently.
Please reach us at contact@dmp-accountants.co.uk if you cannot find an answer to your question.
Turnaround depends on the timely supply of information. Standard delivery is around four weeks. Where there are audit pressures or statutory deadlines, we can fast-track and complete within one to two weeks to ensure timetables are met.
Yes, we can prioritise urgent PPAs (for tight reporting deadlines), subject to resource availability. Urgent work is priced accordingly, though we always aim to provide cost-effective solutions. Feel free to contact us for a tailored quote. We have previously completed engagements within a 2 week deadline and we have the ability to complete sooner.
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. We provide audit-ready reports and handle queries directly, working alongside both the audit team and management to finalise the PPA 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.
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