Purchase price allocation & impairment

Significant reductions in values for companies came from the international economic downturn. Companies must now recognise value reductions.

Accounting Standard AASB 136 requires companies to recognise reductions in values even if they plan to hold the asset until economic recovery. This standard applies to all companies and it's more relevant when a company has made an acquisition and has intangible assets or goodwill on it balance sheet.Log InSubscribe
Simon Dalgarno FCA, Leadenhall VRG