Purchase Price Allocation

Allocating the purchase price is an accounting challenge during the whole process of acquiring a company.

For consolidating a subsidiary for the first time in the consolidated financial statements under both German GAAP and IFRS, it is required to allocate the purchase price to specific assets and liabilities of the acquired company as well as to goodwill at their fair value. As a general rule, intangible assets, in particular, must be revalued.

The activities range from identifying, valuing and accounting for specific assets and liabilities up to the impairment testing of goodwill and of other assets in subsequent years.

We can also assist you in preparing the data required and for the financial statement audit.