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In accounting, purchase price variance (PPV) accounts for the potential change in value of materials from when theyre purchased to when theyre recorded. Understanding PPV can help you manage a companys accounting process。

In this article, we answer What is PPV?, outline what causes variances in the purchase price of products and services, discuss why organisations use PPV, explain how to calculate it and review some examples.

Example of an SPA Here is an example of an SPA: Champions Investment Limited (the buyer) enters into a sales and purchase agreement with Energy B Limited (the seller) concerning the outright purchase of all issued and paid shares of Energy B (the target). With this contract, the buyer shall take ownership of the entire issued and paid shares of。

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