Purchase Price Allocation (PPA)

By |2020-07-23T08:14:47+00:00May 30th, 2019|Categories: Business Valuation|Tags: , , , , |

With respect to the assignment of goodwill and other asset values, valuations for financial reporting purposes involve the allocation of asset values at the reporting unit level, and the acquired assets can be added to an acquirer’s existing reporting units. Book values of assets and liabilities are often different from their fair values. In allocating the purchase price to these assets and liabilities, we step, or write, them up/down to reflect their fair values.