I would certainly hate to face a CPA examination that had nearly equal coverage of both FASB and IASB standards simultaneously.I say this especially after viewing the hundreds of pages of complicated differences between the two standards systems.But clients and auditors generally contend that the cost of doing this greatly exceeds benefits.
utm_source=feedburner&utm_medium=email&utm_campaign=Feed: typepad/theaccountingonion (The Accounting Onion) Bob Jensen's threads on R&D accounting are at Pharmaceutical makers go to great lengths to protect their exclusive marketing rights to best-selling brand-name drugs.
But a pair of lawsuits and a government antitrust investigation involving a drug made by Abbott Laboratories could help define how far those companies can legally go to fend off copycat rivals.
TOPICS: Financial Accounting, Intangible Assets, Research & Development SUMMARY: Aboott Laboratories have been involved in lawsuits and a government antitrust investigation in relation to its 33-year-old cholesterol medication Tri Cor.
In your answer, specifically consider how you can best answer this question using some basis for assessment. In your answer, specifically state how these business conditions impact the required time period over which the cost of patents may be amortized. () Again examine Abbott Labs 10-Q filing made on May 2, 2008, in particular the footnote disclosure related to intangible assets. What accounting policy is consistent with the description of patent rights' useful lives discussed in answer to question 4 above? () What steps has Abbott Labs undertaken to extend the life of its patent on Tri Cor?
Are steps like these a business necessity or merely a method of generating excessive profits for pharmaceutical companies?