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IFRS 3 · Acquisition Accounting · Fair Value

IFRS 3 Purchase Price Allocation Cyprus

Independent valuation support for post-acquisition purchase price allocation, identifiable intangible assets, fair-value measurement and audit-ready IFRS 3 documentation.

IFRS 3PPAIntangible AssetsGoodwillFair ValueIAS 36
After the deal closes

Translate transaction value into
IFRS acquisition accounting

An acquisition price is rarely attributable only to the target’s existing book assets. IFRS 3 may require separately identifiable assets and liabilities to be recognised at acquisition-date fair value before the residual is recorded as goodwill.

We combine valuation modelling with an understanding of the transaction, business model and accounting requirements so the PPA can be explained clearly to management, boards and external auditors.

IFRS 3
Business combination accounting framework
PPA
Fair-value allocation and audit support
PPA workstreams

A defensible bridge from price to goodwill

Transaction Review

Understand purchase consideration, acquisition structure, completion date, existing financial information and the commercial rationale for the transaction.

Intangible Asset Identification

Assess customer relationships, software and technology, brands, licences, contracts and other potential identifiable intangible assets.

Fair-Value Modelling

Select and apply appropriate valuation methods, assumptions, discount rates, useful lives and supporting market or financial inputs.

Customer Relationships

Where relevant, model the value of customer relationships using attrition, margins, contributory asset charges and forecast cash flows.

Technology & IP

Value software, platforms, technology or other intellectual property using income, relief-from-royalty or other appropriate approaches.

Deferred Tax Effects

Coordinate with management and tax advisers on the accounting implications of fair-value adjustments and related deferred-tax balances.

Goodwill Bridge

Reconcile consideration and recognised net assets to the resulting goodwill or other acquisition-accounting outcome.

Audit Support

Provide methodology papers, assumptions, calculations and supporting schedules in a form designed for efficient external-auditor review.

Common acquisition sectors

Particularly relevant where value sits in intangibles

Technology & SaaS

Software, proprietary technology, recurring customer relationships and data-driven business models.

iGaming & Digital Platforms

Platform technology, brands, player relationships, licences, software and complex operating structures.

Professional & Consumer Businesses

Customer relationships, contractual rights, brands, distribution arrangements and other identifiable assets.

Related transaction services

From acquisition diligence to post-deal reporting

Frequently asked questions

Practical questions, answered

What is a purchase price allocation under IFRS 3?

Following a qualifying business combination, the acquirer identifies and measures the identifiable assets acquired and liabilities assumed at the acquisition date, with the residual generally reflected in goodwill or a bargain purchase, subject to IFRS 3.

Which intangible assets may need to be valued?

Depending on the acquired business, identifiable intangibles can include customer relationships, technology, brands, trademarks, contracts, licences and other rights that meet the recognition criteria.

When should the PPA process start?

Ideally shortly after completion, while transaction information, management forecasts and operational knowledge are readily available and before year-end reporting or audit deadlines become compressed.

Can you support the external auditor?

We prepare valuation models, assumptions, methodology papers and supporting schedules designed to be reviewable by the client’s auditor. Acceptance of any valuation remains subject to the auditor’s independent procedures.

Do you also perform impairment testing after acquisition?

Yes. Post-acquisition goodwill and other assets may require IAS 36 impairment analysis. We can support valuation and impairment work as a separate engagement.

Completed an acquisition?
Prepare the PPA early.

Share the transaction documents, completion date and available forecasts for an initial scope discussion.

Confidential initial discussion
Technical insight: contributing IP to a Cyprus company
Why G. Adamides

Senior attention for complex Cyprus mandates

G. Adamides Audit Ltd is an independent ICPAC-regulated firm in Nicosia. Engagements are led by experienced professionals and coordinated across audit, tax, accounting, corporate, valuation and financial reporting disciplines.

Partner-led

Direct senior involvement from scoping through delivery, with clear accountability and communication.

International focus

Experience with international groups, founders, HNWIs, technology, iGaming, fintech and complex cross-border structures.

Coordinated delivery

Corporate documents, accounting records, tax analysis and audit evidence are aligned rather than handled in isolation.

Frequently asked questions

Practical questions, answered

What types of valuations do you perform?

Assignments include business valuations, IP and software valuations, purchase price allocations, impairment testing, shareholder transactions and valuations for tax, audit and financial reporting.

Which valuation methods are used?

The selected method depends on the asset and available evidence and may include discounted cash flow, relief-from-royalty, multi-period excess earnings, replacement cost and market approaches.

Can a valuation support an IP contribution to a Cyprus company?

A valuation can support the commercial and accounting analysis, but the legal contribution, tax treatment, ownership evidence and corporate approvals must also be completed.

Do you provide the supporting workings?

Yes. Engagement deliverables can include the report, model workings, comparable-company analysis, sensitivity analysis and implementation support.

Confidential initial discussion