The pharma & biotech industry is capital-intensive, rapidly evolving and heavily regulated. It also comprises a vast network of entities researching, developing, promoting, collaborating & distributing medicinal & medical products. Amid economic uncertainty and continuous growths in R&D activities, the Finance & Accounting professionals require informed judgements to answer a wide range of complex questions
This masterclass offers advanced analyses of accounting & financial reporting practices crucial to Pharma & Biotech sectors, highlighting key considerations in relation to current economic climate. Discussions on latest standard developments and scenario-setting exercises will encompass practical topics including joint arrangement (e.g. collaborative research, co-development, copromotion); Revenue recognition (e.g. sale & outlicensing of IPs), use of financial instruments; Covid-19 related impairments; Asset acquisition & diverstitures; Tax planning; Lease contracts; as well as specific issues relating to manufacturing & clinical research.
Key Learning Outcomes & Case Studies Include:
- In-depth analyses of revenue recognition (IFRS 15) in pharma & life science sectors
- Covid-19 particular considerations on accounting & financial reporting
- Accounting and reporting issues relating to pharma manufacturing & contract manufacturing
- Accounting for revenue sharing, profit sharing and milestone payments contracts
- Issues relating to asset acquisition and mergers/acquisitions
- Accounting for sale returns – saleable vs expired goods
- Issues relating to research, development activities and clinical trials
- IFRS 16 (Lease standard) and IFRS 9 (Financial Instruments) and impacts on pharmaceutical industry
- IAS 12, deferred taxes and recognition of taxes in pharma industry
- Issues relating to leasing of pharma manufacturing facilities
- Hedge accounting for pharmaceutical industry
Case Studies & Discussions Include:
- Covid-19 particular considerations on accounting & financial reporting
- Accounting of chargebacks, rebates, promotion schemes etc.
- Accounting for intangible assets (e.g. in-licensing arrangements, R&D expenditure, options over IP, research upfront payments) Challenges with goodwill/asset impairment
- Identify the performance obligations in the contract
- Identification of principal and agent, in case of arrangement with distributors
- Contingencies and Loss Recoveries