The accounting of business combinations under IFRS is based on the purchase method. Within the scope of purchase price allocation (PPA), fair values have to be determined for all tangible and intangible assets acquired as well as for all liabilities assumed.

IVC Independent Valuation & Consulting assists you in process management and structuring to enable an appropriate and efficient PPA performance. We factor in the specifics of the organisation and the IT landscape of your business. In the case of purchase price allocations for groups with a large number of (international) subsidiaries we provide appropriate methods to allow for a standardised procedure. Jointly with you we analyse your business model with special regard to any (previously unrecognised) intangible assets. We use sophisticated valuation methods, e.g. the multi-period excess earnings method or the relief-from-royalty method.

Impairment tests are necessary in the context of day-to-day accounting under IFRS and subsequent to purchase price allocations. We provide substantial assistance with regard to the establishment of appropriate impairment test structures and the implementation of impairment tests.

In the case of regular goodwill impairment tests, we advise you, for example, with respect to the integration of such tests into your planning and reporting schedule. As regards „irregular“ impairment tests, we assist you in identifying and monitoring triggering events. We prepare valuation models for all types of impairment tests taking account of the structure of your accounting and controlling data. We determine the relevant cost of capital for you.

Our consulting services include impairment tests under US GAAP.

Within the context of business combinations, impairment tests in accordance with German GAAP (HGB) are especially relevant for investment valuations. You may rely on our support in this matter.