Purchase Price Allocation ("PPA") - A sophisticated business combination financial reporting requirement post M&A

When talking about an M&A deal, people often think of value creation, growth strategy, and market expansion, but only few consider about the complexity associated with business consolidation accounting requirements, in particular, the requirement to execute Purchase Price Allocation ("PPA") for fair value measurement of assets and liabilities and determination of goodwill. This is the key content of Vietnam Accounting Standard No. 11 (VAS 11) or International Accounting Standard No. 3 (IFRS 3 - Business combination). The PPA exercise is often quite complicated and takes a lot of time and effort. With broad experience in M&A advisory as well as assisting clients in PPA implementation, Grant Thornton Vietnam share the challenges and our recommendations so that companies can have a smooth business combination process, and without surprises. View full article