PIRON

 

Pharmaceutical Industry

IFRS for the Pharmaceutical Industry

Duration: 2 Days

This valuable course answers questions such as:

1. What items typically appear on the financial statements of entities in the pharmaceutical industry?
2. How are recognition and measurement rules applied to pharmaceutical research and development, revenue recognition, inventories, and share-based payments?
3. When are expenditures capitalised and what asset valuations rules apply?
4. How IAS 18 and US GAAP are applied to complex revenue recognition situations?
5. What are the significant upcoming accounting issues that will affect entities in the pharmaceutical industry?

Course Summary

This two-day course examines international financial reporting issues in detail and their effect on pharmaceutical entities.

Course Benefits

  • Learn practical answers to typical pharmaceutical questions on research and development, revenue recognition, inventories, share-based payments and presentation issues
  • Apply IAS 18 (and US GAAP) to complex revenue recognition situations
  • Be up-to-date with the latest accounting pronouncements

Teaching Method

  • Identification of the critical issues affecting financial reporting in the pharmaceutical industry
  • Succinct examples and cases that illustrate classification and accounting
  • Presentation and discussion of model financial statement disclosures
  • All participants receive copies of the presentation slides and other course materials

Course Summary

Topics include:

  • Review of IAS 38 Intangible assets
  • When to start capitalising internal development costs
  • How to treat development costs for generics
  • Expenditures to consider for capitalisation
  • Treatment of borrowing costs, patent protection costs, etc.
  • Development of own intellectual property
  • Treatment of advertising and promotional expenditures
  • Determining useful economic lives, start of amortisation, methodology
  • Examples of indefinite-life intangible assets
  • Impairment indicators
  • Revenue recognition
  • Review of IAS 18 and IAS 11
  • Upfront payments, royalties, milestones, non-refundable fees, etc.
  • Gifts
  • Treatment of long-term research arrangements

 

  • Treatment of multi-element collaboration agreements
  • Co-marketing expenses and income.
  • Inventories
  • Indicators of impairment
  • Measuring and recognising impairment losses
  • Treatment of trial and validation batches
  • Review of IFRS 2 Share-based Payment (including equity and cash-settled transactions)
  • Receipt of listed and unlisted shares in exchange for a product, a patent, other goods or services
  • Presentation issues
  • Segment reporting
  • Recently issued standards, interpretations and their impact on pharmaceutical firms
  • Proposed IFRS changes that will affect the sector
  • IFRS-US GAAP convergence update
  • IASB projects and plans of interest to pharmaceutical entities.

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