The biotech industry provides the world with vaccines, therapeutic products, and medical equipments. Over the last 30 years, investors have poured billions into the industry. As the industry matures, it continues to grapple with accounting issues such as Revenue Recognition. Under GAAP, Revenue Recognition guidance comes from SAB 101 & SAB 104. Under these guidelines, the concepts that revenue recognition is based on completing the whole earnings process & transferring the risks and rewards to the final customer are directly applicable to the biotech industry. This live webcast will cover the most critical issues surrounding Revenue Recognition for Biotechs including:
- Sale of products
- Research
- Inventory
- Regulatory Issues
Revenue Recognition for Biotech Firms Update What You Need to Know in 2010 is a must-attend event for accounting professionals in the Biotech and related industries. A team of experts and thought leaders will help you stay in-the-know with respect to the most critical issues surrounding this topic. The audience will have an opportunity to ask the speakers questions directly during the live Q&A session. Sign up for this class by clicking “Register” below. Advanced registration is recommended as space is limited. (Significant discounts apply for early registration.)
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 1.75 - 2.0
Important Note: Your State Bar or Accounting Board will make the final determination with respect to continuing education credit. If you are applying for CLE credit in Texas you must register 20 days before the event date or you will not be able to obtain CLE credit.
Advance Preparation: Print and review course materials
Course Code:103966
Michael McCollister
Global Biotechnology Leader, Boston
Jeff Pickett
Managing Director
Nicolas Morgan
Partner
David B. Elsbree, Jr.
Partner
- Rule changes around multi-element transactions (e.g., collaboration arrangements) could impact accounting for life sciences companies
- New rules will likely result in more elements accounted for separately
- However, there will be implementation challenges
- Have not seen a rush by life sciences companies to early adopt the new rules
- Complicating matters is the FASB/IASB joint convergence project on revenue recognition which could lead to more rule changes
- Overview of recently issued accounting pronouncements that may affect biotechnology companies
· ASU 2009-13, Multiple-Deliverable Revenue Arrangements (EITF 08-1)
· ASU 2009-14, Certain Revenue Arrangements That Include Software Elements (EITF 09-3)
· ASU 2010-17, Milestone Method of Revenue Recognition (EITF 08-9)
SEC Enforcement and FASB Guidance Regarding Revenue Recognition
- Recent FASB Guidance Increases Discretion and Judgment
- Multiple Deliverables: No longer deferring revenue recognition until all portions have been delivered
- Milestones: Determining whether "substantive effort" was required and the amount is "reasonable"
- Greater Discretion May Lead to Greater SEC Scrutiny
- Bally Revenue Recognition Case
- Avoiding Pitfalls: Documenting Decisions
- Multiple Deliverables--how was estimated selling price arrived at?
- Milestones--why was company effort "substantial" and why was payment "reasonable"?
- Greater transparency to senior management, audit committee, and outside auditors
- Overview of recently issued accounting pronouncements that may affect biotechnology companies
· ASU 2009-13, Multiple-Deliverable Revenue Arrangements (EITF 08-1)
· ASU 2009-14, Certain Revenue Arrangements That Include Software Elements (EITF 09-3)
· ASU 2010-17, Milestone Method of Revenue Recognition (EITF 08-9)
- CPAs
- Biotech Firms
- CFOs
- CPAs
- Controllers
- Accountants
- Auditors
- Senior Finance Executives
- Pharmaceutical and Biotech professionals
- Biotechnology and Medical Device Industries
This is a must attend event for anyone interested in having clear understanding on Revenue Recognition for Biotech Firms
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A