Intangible Assets in Purchase Price Allocations（无形资产购买价格分配）.pdf

Transaction Financial Reporting Insights Intangible Assets in Purchase Price Allocations Brian Holloway There are numerous reasons why a company will conduct a valuation of its intangible assets. One such reason relates to valuing the intangible assets, and all other assets, that were transferred in the acquisition of the company. As is the case with any valuation, the valuation analyst should be familiar with the assignment purpose and with all compliance matters associated with the intangible asset valuation. This discussion provides an overview of (1) the purchase price allocation analysis procedures and (2) the procedures that analysts consider in the valuation of intangible assets as part of the acquisition accounting. inTroducTion an acquirer obtains control of a business and its underlying assets. Mergers and acquisitions can trigger many financial and tax reporting requirements for companies. A Internal Revenue Code Section 1060 and Section common requirement for both reporting purposes 338 provide procedures for completing the PPA in a is accounting for an acquisition by providing a pur- taxable business purchase transaction for federal chase price allocation (PPA) analysis. income tax reporting purposes. For federal income tax reporting, companies are only required to com- A PPA is an allocation of th