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Asset valuation services for private, government, or commercial entities throughout Indonesia.

Purchase Price Allocation (PPA)

Purchase Price Allocation (PPA) is a valuation process conducted after a business acquisition or merger, where the total purchase price is allocated to identifiable assets and liabilities of the acquired company at their fair values, in accordance with applicable accounting standards.

What does KJPP do in a PPA assignment?

A KJPP acts as an independent appraiser, ensuring the allocation is objective, compliant, and defensible.

The scope typically includes:

• Tangible assets
  (land, buildings, machinery, equipment)

• Identifiable intangible assets
  (brands, customer relationships, licenses, technology, contracts)

• Liabilities
  (loans, provisions, contingent liabilities)

• Goodwill calculation
  (residual value after fair value allocation)

Why is PPA important?

• Required for financial reporting and audit purposes

• Ensures compliance with PSAK 22 / IFRS 3 (Business Combinations)

• Determines future depreciation and amortization

• Provides transparency for investors, auditors, and regulators

General PPA process by KJPP

1. Understanding the transaction
   Review acquisition structure, agreements, and purchase consideration

2. Identification of assets & liabilities
   Including previously unrecorded intangible assets

3. Fair value measurement
   Using market, income, or cost approaches

4. Allocation of purchase price
   Based on fair value results

5. Goodwill determination

6. Preparation of valuation report
   Audit-ready and compliant with appraisal standards

Output

• Independent PPA Valuation Report

• Clear fair value breakdown

• Supporting assumptions and methodologies

• Ready for audit review and financial statements