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Understanding cost price components

Purchase Price Allocation, or Cost Price Allocation, gives substance to how a company accounts for the purchase price of an acquisition in its financial statements. After an acquisition of a company, under both the Dutch Accounting Standards (Dutch Gaap) and International Financial Reporting Standards (IFRS-3), the price paid must be allocated to the assets acquired.

Why

  • With a Purchase Price Allocation, assets are valued at fair value or market value, where continuation at the same location is the starting point.
  • Our appraisers also know how to deal with deviating situations (e.g. IFRS 5).
  • The report lists cash generating units and provides transparent insight into the fair value of land, property, machinery and equipment.
  • Our starting point is as much as possible based on evidence.

Benefits

  • Troostwijk is an independent organization, we are open-minded.
  • Our appraisers operate worldwide and act confidentially.
  • Your real estate, machinery and equipment valuation issues are handled by (RICS) certified appraisers.
  • A business valuation with allocation of fixed asset components is also part of our services.

Our method

  • Once the purpose and reporting format of the assignment have been established, the execution period is discussed.
  • Our client is assigned an experienced project manager who acts between all parties involved.
  • We are active in all segments: from industry and SMES enterprises, to multinationals and healthcare institutions.
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