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Accounting Advanced

Purchase Price Allocation: Goodwill, Intangibles & Fair Value Step-ups

Measure the consideration with an earn-out, strip the target’s old goodwill, step up PP&E and inventory, value a brand with relief-from-royalty and customers with MPEEM, book the deferred tax, test for a bargain purchase, compare full and partial goodwill and chart the post-deal charges: 8 labs on one fictional deal (educational, IFRS 3 / ASC 805 principles).

8 lessons 8 labs 2 h Certificate

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What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

  • Measure what Ardenfield pays for 80% of Solvik Home: cash, discounted deferred cash, shares at the acquisition-date price and an earn-out at fair value.
  • Work out Solvik’s book net assets, remove its old goodwill and find the excess of the price over Ardenfield’s share of book value.
  • Calculate the fair value step-ups of Solvik’s land, buildings, machinery and finished goods and the extra depreciation they cause.
  • Value the Solvik brand: the after-tax royalties it saves, their present value and a terminal value for the years after 2030.
  • Value Solvik’s customer relationships: decaying revenue, after-tax profit, contributory asset charges, excess earnings and their present value.
  • Book the deferred tax liability on every fair value step-up and calculate Solvik’s identifiable net assets at fair value.
  • Calculate goodwill for the actual deal and for a distressed-sale scenario in which the buyer makes a bargain purchase gain.
  • Compare full and partial goodwill, build the five-year schedule of PPA charges and chart it.

About this course

After a deal closes, someone has to explain where the purchase price went. This course walks you through that allocation from start to finish. You measure consideration including deferred cash, shares and an earn-out, compare it with book net assets and isolate the excess. Fair value step-ups for property, plant and inventory follow, with their extra depreciation. You value a brand with relief-from-royalty and customer relationships with the multi-period excess earnings method, then add deferred tax on every step-up. Goodwill falls out as the residual, with a bargain purchase test, and the last lab compares full and partial goodwill for non-controlling interests and builds the post-deal amortisation schedule. Built for transaction services, valuation and corporate accounting professionals.

Curriculum

Course content

8 lessons · 8 labs · 2 h · final exam

  1. Consideration Transferred: Cash, Deferred Cash, Shares & Earn-Out at Fair ValueLab14 min4 checked tasks
    Unlocked when you buy the course
  2. Book Value of the Net Assets Acquired & the Excess to AllocateLab12 min4 checked tasks
    Unlocked when you buy the course
  3. Fair Value Step-ups: PP&E, Extra Depreciation & InventoryLab14 min4 checked tasks
    Unlocked when you buy the course
  4. Identifying & Valuing Intangibles: the Brand with Relief-from-RoyaltyLab16 min4 checked tasks
    Unlocked when you buy the course
  5. Customer Relationships with the Multi-Period Excess Earnings MethodLab18 min4 checked tasks
    Unlocked when you buy the course
  6. Deferred Tax on the Step-ups & Net Assets at Fair ValueLab13 min4 checked tasks
    Unlocked when you buy the course
  7. Goodwill & the Bargain Purchase CheckLab13 min4 checked tasks
    Unlocked when you buy the course
  8. NCI: Full vs Partial Goodwill & the Post-Deal Amortisation ScheduleLab18 min5 checked tasks
    Unlocked when you buy the course
  9. Final exam12 questions, 75% to pass, unlimited retries.

Certificate

Finish with a certificate you can verify

Complete every lesson and pass the final exam to receive a certificate of completion for this course, with a unique credential ID and a public verification page.

  • Names the course, your score and the date of issue
  • A verification link for your CV or LinkedIn profile
  • 12 questions, 75% to pass, unlimited retries.

A Tutorvo certificate confirms that you completed a course. It is not an official or professional qualification.

Illustration. Your certificate shows your own name, course and credential ID.

Before you buy

Questions about this course

Is this a subscription?

No. You pay $9.99 once for this course. There is no subscription and nothing renews automatically. Prices are in US dollars; taxes may be added where required.

What exactly do I get?

All lessons and labs of this course, the final exam and the certificate, including later updates to the course, for as long as Tutorvo offers it. Access is personal and tied to your account.

Can I get a refund?

Yes. If you are not satisfied, email hello@tutorvo.com within 14 days of buying and we refund the course in full via Stripe. The guarantee does not apply once a certificate for the course has been issued to you, or where there are signs of abuse.

When can I start?

Right after payment. Access starts immediately at your request; for consumers in the EU/EEA the statutory right of withdrawal therefore ends once access has begun, while our 14-day money-back guarantee applies regardless.

Do I need Excel or other software?

No. The labs run in a spreadsheet inside your browser on a laptop, tablet or phone. Function names and syntax follow Excel.

Is the certificate an official qualification?

No. It confirms that you completed all lessons of the course and passed its final exam. It is not an official, state-recognised or professional qualification. The name is taken from your profile when the certificate is issued.

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