CPC 15
Valuation and Technical Reports
PPA: transparency in the allocation of the purchase price
We allocate the acquisition price among identifiable assets and assumed liabilities at fair value, determining goodwill or any gain on a bargain purchase, and transforming business combinations into clear, consistent, and auditable accounting information.urchase price among assets, liabilities, and goodwill, transforming business combinations into clear, consistent, and auditable accounting information.
We prepare Purchase Price Allocation (PPA) reports to meet the requirements of CPC 15 (R2) — Business Combinations and IFRS 3, supporting companies, funds, consolidating groups, and accounting, controllership, and audit departments in the proper recognition of acquisitions.
Our work identifies and measures—at fair value—the assets acquired and liabilities assumed in the transaction. We value tangible and intangible assets, such as brands, customer relationships, contracts, technologies, licenses, and other elements relevant to the business’s value generation.
We also analyze the consideration transferred, considering its payment structure—including upfront payments, deferred payments, and contingent consideration (earn-outs), where applicable. Based on these analyses, we determine the goodwill (premium paid for expected future profitability) or any gain from a bargain purchase, demonstrating how the acquisition price is allocated among identifiable assets, assumed liabilities, and goodwill or the bargain purchase gain. CPC 15 (R2), which is aligned with IFRS 3, establishes the criteria for the recognition and measurement of acquired identifiable assets, assumed liabilities, non-controlling interests (where applicable), and goodwill or bargain purchase gains under the acquisition method.
Using a consistent methodology, technical substantiation, and the direct involvement of senior professionals, we deliver independent, well-documented reports designed to support accounting records, the audit process, and the quality of financial statements. This approach aligns with the guidelines presented in B2R’s specialized framework, which positions PPA as one of the key specialized applications of valuation.
More than simply meeting an accounting requirement, the PPA offers a structured view of the acquisition’s economic composition, highlighting the assets, liabilities, and factors justifying the price paid for the business.
Each project begins with a rigorous analysis of the transaction contracts, business model, financial projections, payment terms, and the characteristics of the acquired assets. This assessment enables the identification and separate recognition of identifiable intangible assets—such as brands, technologies, and customer relationships—that often were not recorded in the acquiree’s financial statements.
By transforming contractual, financial, and operational information into clear, traceable technical conclusions, we create a more robust foundation for audits, accounting closes, management reporting, and post-transaction decision-making. The report also supports the determination of useful lives and amortization schedules for intangible assets with finite useful lives, while providing the necessary data for future asset and goodwill impairment tests, as required by accounting standards.
The result is greater transparency in price allocation, increased reliability in financial statements, and a more precise understanding of the assets, liabilities, and other economic elements recognized in the business combination.