The deal has closed. Now the books have to reflect it correctly.
Purchase price allocation is not optional accounting — it is a requirement under applicable standards. Fundara prepares the allocation, the journal entries, the disclosure schedules, and the opening balance sheet so your combined entity starts from a sound foundation.
How the acquisition consideration is assigned to acquired assets and liabilities shapes your reported financials, your goodwill balance, and your intangible asset amortization for years to come. Getting that allocation right — and supporting it with documentation that holds up to audit — is what this engagement is built around.
← Back to Home Discuss Your TransactionA complete, audit-ready allocation that reflects the economic substance of what was acquired.
When Fundara completes a Purchase Price Allocation engagement, you receive a fully documented assignment of acquisition consideration across tangible assets, identifiable intangible assets, liabilities assumed, and goodwill — prepared in accordance with ASC 805 or IFRS 3, depending on your reporting framework.
That means journal entries your accounting team can post, disclosure schedules your auditors can reference, and an opening balance sheet for the combined entity that reflects the transaction as it actually occurred.
Fair Value Allocation
Acquisition consideration assigned to each asset and liability class at fair value, with documented methodology.
Intangible Asset Identification
Customer relationships, trade names, technology, and other identifiable intangibles separated from goodwill as standards require.
Opening Balance Sheet
The combined entity's opening balance sheet prepared and ready to serve as the starting point for consolidated reporting.
Audit-Ready Documentation
Supporting schedules and disclosure workpapers that your auditors can work from directly — without additional reconstruction.
After closing, the accounting clock starts immediately — and PPA is one of the first obligations.
Accounting standards allow a measurement period of up to twelve months following the acquisition date to finalize the allocation. But financial statements prepared during that period still need to reflect a preliminary allocation — and the work to develop one takes time and coordination with valuation specialists that many finance teams are not staffed to manage internally.
A poorly documented or incomplete PPA creates downstream problems: goodwill impairment testing that rests on a shaky foundation, amortization schedules that don't reflect what was actually acquired, and audit findings that require restatement. The cost of getting it right the first time is modest compared to the cost of correcting it later.
Where PPA engagements typically become complicated:
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Intangible assets that require coordination with an independent valuation specialist before the allocation can be finalized.
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The acquired entity's financial records not being organized in a way that supports fair value determination without additional work.
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Deferred tax implications of the allocation that affect the goodwill balance and require careful treatment.
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First consolidated financial statements being due before the PPA work has been completed and reviewed.
Coordinated allocation work — from the initial asset inventory through the final journal entry.
Fundara manages the accounting side of the PPA process, coordinating with your valuation specialists and auditors so the allocation is complete, consistent, and properly documented.
Asset & Liability Inventory
We systematically catalog the acquired entity's tangible assets, identifiable intangibles, assumed liabilities, and contingent items to establish the full scope of the allocation.
Valuation Coordination
We coordinate directly with your appointed valuation specialist, ensuring that fair value inputs are received, reviewed, and incorporated into the allocation in a way that is consistent with applicable standards.
Goodwill Determination
The residual goodwill figure is derived from the total consideration transferred less the net fair value of assets acquired and liabilities assumed, documented with full supporting workpapers.
Deferred Tax Treatment
Book and tax basis differences arising from the allocation are identified and deferred tax assets or liabilities are established in accordance with applicable guidance.
Journal Entries & Schedules
Acquisition journal entries are prepared, along with amortization schedules for finite-lived intangibles and disclosure workpapers for notes to the financial statements.
Opening Balance Sheet
The combined entity's opening balance sheet is prepared as of the acquisition date, reflecting the allocation and providing the starting point for consolidated financial reporting going forward.
A coordinated process — not a handoff.
Purchase price allocation requires input from multiple parties — the acquirer's finance team, valuation specialists, tax advisors, and ultimately auditors. Fundara sits at the accounting center of that coordination, ensuring that inputs from each party are incorporated correctly and that the accounting treatment is consistent throughout.
We begin from the acquisition agreement — understanding the total consideration, contingent payments, transaction costs treatment, and any seller financing arrangements — before moving into the allocation work itself.
Throughout the engagement, your finance team has visibility into where the work stands and what questions remain open. Nothing in the final deliverable should come as a surprise.
Engagement Start
We review the acquisition agreement, understand the consideration structure, and identify the acquired assets and liabilities to be allocated.
Valuation Input
We coordinate with your valuation specialist, receive fair value reports, and review them for consistency with accounting requirements before incorporating them.
Allocation Development
The full allocation is prepared with supporting schedules, deferred tax treatment, and disclosure workpapers — reviewed internally before delivery.
Delivery & Auditor Support
Deliverables are handed off with a walkthrough session and we remain available to respond to auditor questions arising from the allocation.
A fixed starting point for defined, documented work.
The starting investment for a Purchase Price Allocation engagement is $6,500 USD. That covers the full scope of the allocation as outlined — asset inventory, coordination with valuation specialists, goodwill determination, deferred tax treatment, journal entries, disclosure schedules, and the opening balance sheet.
Transactions with a large number of acquired intangibles, multiple entities, or significant deferred tax complexity may be scoped at a higher investment. That is a conversation we have before any agreement is reached — not an adjustment made after work has begun.
The PPA engagement does not include the valuation of intangible assets — that work is performed by an independent valuation specialist. We coordinate with whoever you appoint, or we can suggest specialists we have worked with previously.
Purchase Price Allocation
$6,500 USDWhat's included
- Acquired asset and liability inventory and classification
- Coordination with appointed valuation specialist
- Intangible asset identification and separation from goodwill
- Goodwill determination with supporting documentation
- Deferred tax asset and liability identification and recording
- Acquisition journal entries and amortization schedules
- Disclosure schedules for financial statement footnotes
- Opening balance sheet for the combined entity
Independent valuation fees are separate and are not included in this engagement. We can coordinate with your specialist or help identify one if needed.
Allocation work grounded in applicable standards — documented to withstand audit scrutiny.
Standards applied
Fundara prepares purchase price allocations in accordance with ASC 805 (Business Combinations) for US GAAP reporters, or IFRS 3 (Business Combinations) for entities reporting under IFRS. Where a transaction involves entities under different frameworks, we identify the implications and address them explicitly.
ASC 805
US GAAP business combination accounting
IFRS 3
IFRS business combination treatment
ASC 740
Deferred tax treatment in acquisitions
ASC 350
Intangibles — goodwill and other assets
What a completed engagement produces
Finance teams and auditors who have worked through acquisitions know that the allocation documentation matters as much as the numbers themselves. Every figure in a Fundara PPA deliverable is tied to its source — the acquisition agreement, the valuation report, or the acquired entity's records.
The typical timeline from engagement start to completed deliverable is three to six weeks — influenced primarily by when valuation inputs are available and the complexity of the intangible asset pool.
We remain available to address auditor questions after delivery, which typically shortens the audit process for the acquisition accounting itself.
Every deliverable is complete before it leaves. Nothing is handed over half-finished with the expectation that your team will fill in the gaps.
The scope of the PPA engagement is defined in writing before work begins. Journal entries, schedules, and the opening balance sheet are all part of that agreed scope — not additional items to be negotiated after the allocation itself is complete.
If issues arise during the engagement that were not visible at scoping — for example, the acquired entity's records being in a state that requires significant reconstruction before allocation work can proceed — we raise that clearly and discuss how to proceed, rather than absorbing scope creep silently or billing without notice.
The initial conversation to discuss your transaction and its post-closing accounting requirements carries no commitment on your part.
Discuss Your Post-Closing AccountingHow a Purchase Price Allocation engagement begins.
Contact Us
Send a message describing the transaction — closing date, entity type, and what you have in place for valuation work.
Scoping Call
We review the acquisition agreement and discuss the acquired entity, the consideration structure, and the timeline for your first consolidated financials.
Agreement
Scope, deliverables, timeline, and investment are confirmed in writing. Engagement begins once the agreement is in place.
Allocation Work Begins
We work through the allocation in coordination with your valuation specialist, keeping your team informed throughout the process.
Transaction closed or closing shortly?
Reach out and describe your situation. We'll explain how a PPA engagement with Fundara fits into your post-closing timeline — directly and without pressure.
Contact Fundara About PPAFundara services cover the full transaction lifecycle.
Transaction Due Diligence
A thorough financial examination of the target — earnings quality, working capital trends, and non-recurring items — before you commit to the acquisition.
Post-Merger Integration Accounting
Consolidation support during the critical months after closing — unified reporting structures, harmonized policies, and combined financial statements.