When a business acquisition takes place, allocating the purchase price among the acquired assets and liabilities is crucial for financial reporting, tax compliance, and strategic decision-making. This process, known as Purchase Price Allocation (PPA), ensures that the fair values of tangible and intangible assets are accurately recorded on the balance sheet.

Importance of Purchase Price Allocation

PPA is essential for:
• IFRS & GAAP Compliance – Ensuring financial statements align with accounting standards.
• Tax Optimization – Structuring asset allocation to optimize tax liabilities.
• Strategic Valuation – Helping management understand the true value of acquired assets.
• Impairment Testing – Assessing goodwill and intangible assets for potential impairment.

Key Components of PPA

A proper PPA involves:
1. Identifying Tangible & Intangible Assets – Including machinery, real estate, brand value, customer relationships, and intellectual property.
2. Fair Value Measurement – Using valuation techniques like Discounted Cash Flow (DCF) or Market Approach.
3. Goodwill Allocation – Determining the residual value post-allocation.

How Aviaan Can Help

Aviaan Accounting is a trusted provider of PPA services in Dubai, UAE, assisting businesses with:
• Comprehensive Valuation – Expert valuation of tangible and intangible assets.
• IFRS Compliance – Ensuring proper financial reporting under IFRS 3 (Business Combinations).
• Tax-Efficient Structuring – Helping optimize tax treatment of allocated assets.
• Independent Advisory – Offering unbiased, data-driven insights for accurate financial reporting.
• Customized Solutions – Tailoring the PPA process based on industry-specific needs.

Why Choose Aviaan Accounting?

With extensive experience in business valuation and financial reporting, Aviaan provides:
• A team of qualified valuation experts.
• A deep understanding of UAE’s financial regulations.
• Timely and cost-effective PPA services.

If your company has recently undergone a merger or acquisition in the UAE, Aviaan can help streamline your Purchase Price Allocation process with precision and compliance.

Contact Aviaan today for expert PPA services in Dubai!