The course aims to provide participants with a comprehensive understanding of the Purchase Price Allocation (PPA) requirements under FRS 103, alongside practical approaches to valuing intangible assets recognised in business combinations.

The course will equip participants with knowledge and practical skills necessary to effectively perform and review PPA exercises in compliance with accounting standards and industry best practices.

At the end of this course, you will be able to:

• Apply key valuation methodologies for intangible assets in business combinations, such as the Relief from Royalty, Multi-Period Excess Earnings, With and Without, and Reproduction Cost Methods.
• Analyse the process of Purchase Price Allocation (PPA), including the calculation of goodwill and conducting essential cross-checks using metrics like WACC/WARA and IRR.
• Evaluate practical challenges in valuing purchase consideration, including share-based, contingent consideration, and options.

Programme Outline

• Overview of the step-by-step process of performing a PPA under FRS 103.
• Analyse various types of intangible assets to be recognised in business combinations.
• Apply appropriate valuation methodologies to value different types of intangible assets, including:
  • Relief from Royalty Method
  • Multi-Period Excess Earnings Method (MPEEM)
  • With and With-Out Method
  • Reproduction Cost Method
• Address practical challenges in valuing purchase consideration, including share-based consideration, contingent consideration and options.
• Compute goodwill and conduct essential cross-checks in the PPA, such as:
  • Reconciliation of Weighted Average Cost of Capital (WACC) / Weighted Average Return on Assets (WARA) and Internal Rate of Return (IRR)
  • Transaction benchmarking
• Navigate practical considerations and overcome common challenges encountered during the implementation of a PPA.
• Case Studies and Practical Examples

Closing Date for Registration

1 week before programme or until full enrolment.

Intended For

This course is designed for auditors working with clients involved in business combinations, as well as finance managers and controllers. It is also suitable for valuation specialists, corporate finance professionals, and finance professionals engaged in mergers and acquisitions (M&A) transactions.