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PURCHASE PRICE ALLOCATION &

BUSINESS COMBINATIONS

PURCHASE PRICE ALLOCATION &
BUSINESS COMBINATIONS

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Lim & Young is conversant with International Financial Reporting Standard 3: Business Combinations (IFRS 3) and its requirements relating to merger and acquisition activities, enabling us to offer critical advise on key areas of concern to clients, auditors and regulators.  Purchase price allocation is performed after an acquisition in which the purchase price is required to be allocated into the assets and liabilities of the target company acquired in the transaction at fair value, and goodwill is measured as the difference between the purchase price and the total fair value of assets and liabilities of an acquired company.  

 

We can help address the valuation requirements from business combination and purchase price allocation post acquisition arising from IFRS 3, including: 

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  • Pre-acquisition pricing analysis

  • Valuation of contingent assets and liabilities

  • Valuation of options to buy/sell equity interests

  • Valuation of derivatives and other financial instruments and their subsequent mark-to-market

  • Fair value measurement of non-cash consideration transferred and remaining noncontrolling interests

  • Fair value measurement of identifiable intangible assets, including brands, technology, patents, and customer relationships

  • Fair value measurement of contract liabilities (a.k.a. deferred revenue) and other liabilities

  • Measurement of goodwill or negative goodwill

  • Allocation of purchase price at fair value and goodwill to reporting units (cash generating units)

  • Legal entity valuations for tax purposes relating to the business combination

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