Purchase Price Allocation is the process of allocating the price of the purchase of a business into the assets and liabilities of the target firm under accounting and financial reporting of a merger and acquisition transaction. Under the International Financial Reporting Standards (IFRS), accounting standards for valuers are required to apply the purchase price allocation method for all types of business combination transactions especially mergers and acquisitions. Through the purchase price allocation analytics, valuers can determine the extent of goodwill associated with a business combination such as mergers and acquisitions.