M&A Accounting: Purchase Price Allocation Fundamentals

When companies merge or acquire one another, financial professionals must accurately account for the transaction. Understanding how to allocate the purchase price to assets and liabilities is a critical skill in corporate finance and accounting. This text-based course guides you through the entire purchase price allocation (PPA) process. You will transition from understanding basic transaction mechanics to confidently calculating goodwill, identifying modern intangible assets, and adjusting for deferred taxes under current accounting standards. What you'll learn: - Understand the foundational principles of M&A accounting and the purchase price allocation process - Calculate goodwill and identify identifiable intangible assets like technology, brand, and customer relationships - Determine fair value adjustments for acquired assets and liabilities - Apply modern deferred tax accounting principles to fair value adjustments - Analyze the balance sheet impact of a transaction from pre-deal to post-closing The course begins with core definitions and structural concepts before walking you step-by-step through a practical acquisition scenario. Through clear written explanations and structured financial exercises, you will practice building a PPA schedule. This course is designed for beginning accountants, finance students, and corporate analysts looking to build a strong foundation in transaction accounting. No prior M&A experience is required. Start reading today to master the mechanics of transactional accounting.