1) What is Purchase Price Allocation? Briefly discuss

1. Purchase price allocation is is any strategy through which there will be application of the Goodwill accounting where one Company will be purchasing another company and it will be allocating the purchase price into various Assets and liabilities which have been acquired from the transaction so so it will be helping in accurately e reflecting value driver for acquired business.

2. It is important for business combination because it will help financial statement user for understanding what part of purchase business is worth, and it is important to highlight that not all required targets are subject to being recorded as a business combination and it will also reflect that overall value driver which has been required by the business.