Glossary
Purchase Price Allocation (PPA)
A purchase price allocation allocates the price paid to acquire a business across the fair value of the identifiable assets acquired and liabilities assumed, with any amount left over recognized as goodwill. It happens after a business combination closes and feeds directly into the acquirer's post-acquisition financial statements, under IFRS 3 for IFRS reporters or the ASPE business combinations standard for private companies. Our purchase price allocation guide walks through how a PPA works end to end.
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