Purchase Price Allocation and Intangible Assets Valuation

According to the accounting standards such as IFRS 3, HKFRS 3R and US GAAP ASC 805, acquirers are required to perform a purchase price allocation (“PPA”) exercise to measure the fair values of purchase consideration, tangible and intangible assets acquired, remaining useful lives of the assets and the value of goodwill, if any. Apart from statutory requirements, it is also highly recommended to perform a pre-deal PPA exercise before the acquisition to assist management assessing the potential financial impact arisen from the acquisition.

Common intangible assets include, but not limited to:

• Trade Names
• Customer Relationships
• Technology
• In Progress R&D (IP R&D)
• Concession Right
• License
• Mining Right
• Favourable / Unfavourable Contracts