Premium Essay

Accounting in Biomedical

In: Business and Management

Submitted By neelima
Words 339
Pages 2
SUMMARY This essay is an attempt to understand the strengths, shortfalls and differences of current national and international accounting rules for reporting R&D expenditure, with a specific emphasis to pharmaceutical industry. This essay challenges the current dogma of considering R&D as an expanse and also provides some insights into overcoming these challenges.

INTRODUCTION Accounting is an art and science of communicating the financial information of the organizations to its managers, employees, investors, creditors etc. There are numerous rules and principals set to report and record these financial transactions, mainly govern by Financial Accounting Standards Board (FASB) in USA known as Generally Accepted Accounting Principles (GAAP) and International Accounting Standards Board (IASB) for international standards known as International Financial Reporting Standards (IFRS). Unlike other industrial sectors, Research and Development (R&D) is the key strength and major financial obligation of pharmaceutical companies. Depending on the size and growth stage, pharmaceutical companies spend 30-40% of their total revenue in R&D. Due to robust healthcare spending pharmaceutical industrial growth is rapidly sprouting worldwide. According to the recent IMS world review and McKinsey Global Institute Report (1), USA remains on top with 444 billion USD projected pharmaceutical markets in year 2015. Therefore, it is imperative to develop logically standardized GAPP and IFRS principals and processes for reporting R&D in financial statements. The disparities among current accounting practices related to R&D reporting makes it difficult to analyze the prospects of success of pharmaceutical company. In particular, financial statements of new pharmaceutical companies are misperceived with little or no cash flows and negative earnings due to high R&D

Similar Documents

Premium Essay

Accounting in Biotech

...alternate ways to support their research. Across the globe these financial pressures, evolving scientific technologies and growing demand of healthcare industry turned several biomedical researchers into bioentrepreneurs. According to a latest report the Biotech industry is on track to raise $44 billion in 2011—the most ever, including the genomics bubble of 2000. Biotech indexes performed well and the private biotech sector was also up, raising $2.9 billion (1) (also see appendix: 1). Moreover, according to the recent IMS world review and McKinsey Global Institute Report, USA remains on top with 444 billion USD projected pharmaceutical markets by year 2015 (2). These emerging trends in biotechnology sector prompted several others like me to explore the path of bioentrepreneurship however, after investing my past 15 years as a pure biomedical researcher the language of accounting is as foreign to me as any biotechnological lingo for an accountant. Thus I started to acquaint myself with this new business language. I firmly believe that a journey of biomedical scientist starting from bench side (of a basic research laboratory) to the boardroom (of a business entity) is not going be easy. Therefore, it’s necessary for any bioentrepreneur including myself to understand and implicate the basic accounting principles and practices from the very beginning of the business. Research & development, mergers & acquisitions, revenue recognition, cost capitalization and contract ...

Words: 318 - Pages: 2

Free Essay

Research on the Links Between Religious Beliefs and Medical Decisions in Jaffna, Sri Lanka.

...which religious beliefs affect the medical-decision making of Sri Lankans in Jaffna. Due to the medically pluralistic environment of Jaffna, many citizens employ complex combinations of both biomedical and spiritual healing modalities. Many Sri Lankans have adopted informal guidelines according to their belief systems that dictate which medical healing modalities they seek when illness arises. In order to investigate the ways in which biomedical and spiritual thought intersect in Jaffna, this research will be conducted through certain interviews, observation of patient-doctor interactions, Point Pedro Hospital, Jaffna District. The main objectives of this research project are to give insight into the various etiologies of disease that are adopted by both the biomedical and spiritual healing systems in Jaffna, to identify complementary aspects of both explanatory models of these systems, and to further propose practical steps towards building trust and collaboration between these systems and in patient-healer relationships in order to ultimately take steps toward improving health outcomes in partnering institutions within Jaffna. Background Due to the medically pluralistic environment of Jaffna and the surrounding areas, many people in Jaffna employ complex combinations of both biomedical and spiritual healing modalities. While researching the connections between faith and medicine in Jaffna public school study programs, it became evident to me that many people in Jaffna have...

Words: 760 - Pages: 4

Premium Essay

Student

...responsibilities of employees 6) It establishes a relationship between authority and responsibility and controls the effort of the group 7) Organization is a step towards achievement of established goals Elements of Organization The main elements or components of an organization are: 1) Well defined objectives 2) Well organized and coordinated group of people 3) Proper division of work and labour 4) Clear and well defined policies and procedures 5) Proper division of authority and responsibility 6) An effective system of communication Organization Chart Simple Organization Chart Lecture Notes on Industrial Organization and Management Subject handled by: Dr. Shouri P.V., Asst. Professor in Mechanical Engineering, MEC, Cochin (for S7 Biomedical) 2 An organization chart is a simple drawing of lines and boxes showing how the firm is organized. Boxes represent the activities of the firm and the people who perform these activities. Lines indicate the relationships among them. Positions near the top of the chart have more authority and responsibility than those below them. The number of...

Words: 28190 - Pages: 113

Premium Essay

Analyze

...Hassan Alabdrabalnabi Like all primary care physicians, Dr. Bob Goldszer must stay on top of approximately 10,000 different diseases and syndromes, 3,000 medications, 1,100 laboratory tests, and many of the 400,000 articles added each year to the biomedical literature. That's no easy task. And it is, quite literally, a matter of life and death. The Institute of Medicine's 1999 report, To Err Is Human, suggests that more than a million injuries, and 90,000 deaths are attributable to medical errors annually. Something like 5% of hospital patients have adverse reactions to drugs, another study reports, and of those, 43% are serious, life threatening, or fatal. Many knowledge workers have problems similar to Dr. Goldszer's (though they're usually less life threatening). No matter what the field, many people simply can't keep up with all they need to know. In the early years of knowledge management, companies established knowledge networks and communities of practice, built knowledge repositories, and attempted to motivate people to share knowledge. But each of these activities involved a great deal of additional labor for knowledge workers. A better approach, say the authors, is to bake specialized knowledge into the jobs of highly skilled workers. Partners HealthCare has started to embed knowledge into the technology that doctor’s use in their jobs so that consulting it is no longer a separate activity. Now when Dr. Goldszer orders medicine or a lab test, the order-entry system...

Words: 974 - Pages: 4

Premium Essay

Not at This Time

...Clusters, Innovation, and Competitiveness: New Findings and Implications for Policy Professor Michael E. Porter Institute for Strategy and Competitiveness Harvard Business School Stockholm, Sweden 22 January 2008 This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “The Microeconomic Foundations of Economic Development,” (with C Ketels, M Delgado) in The Global Competitiveness Report 2006, (World Economic Forum, 2005), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 1998), and the Cluster Initiative Greenbook (Ivory Tower, 2004) by C Ketels, O Solvell, and G Lindqvist. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the author. Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu The Changing Nature of International Competition • Falling restraints to trade and investment • Globalization of markets • Globalization of value chains • Shift from vertical integration to relying on outside suppliers, partners, and institutions • Increasing knowledge and skill intensity of competition • Nations and regions compete on becoming the most productive locations for business European...

Words: 2742 - Pages: 11

Free Essay

Ethics & Prison

...LAW The Scholarly Commons 2007 Biomedical Research Involving Prisoners: Ethical Values and Legal Regulation Lawrence O. Gostin Georgetown University Law Center, gostin@law.georgetown.edu Georgetown Public Law and Legal Theory Research Paper No. 976413 This paper can be downloaded free of charge from: http://scholarship.law.georgetown.edu/facpub/479 http://ssrn.com/abstract=976413 297 JAMA 737-740 (2007) This open-access article is brought to you by the Georgetown Law Library. Posted with permission of the author. COMMENTARIES Biomedical Research Involving Prisoners Ethical Values and Legal Regulation Lawrence O. Gostin, JD U NTIL THE EARLY 1970 S , R. J. R EYNOLDS , D OW Chemical, the US Army, major pharmaceutical companies, and other sponsors conducted a wide variety of research on prisoners—a captive, vulnerable, and easily accessible population.1,2 During that time, approximately 90% of all pharmaceutical research was conducted on prisoners, who also were subjected to biochemical research ranging from testing diet drinks and simple detergents to studies involving dioxin and chemical warfare agents.3 From 1962 to 1966, for example, 33 pharmaceutical companies tested 153 experimental drugs at Holmesburg Prison in Philadelphia, including a Retin-A (tretinoin) study in which researchers did not seek informed consent and prisoners were not adequately treated for pain.4 By the mid-1970s, biomedical research in prisons sharply declined as...

Words: 3561 - Pages: 15

Free Essay

The One

...UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) FACULTY OF BUSINESS AND FINANCE (FBF) MAY 2012 TRIMESTER UBMM/UKMM1013 MANAGEMENT PRINCIPLES TUTORIAL QUESTIONS Bachelor of Business Administration (Hons) (BA) Bachelor of Commerce (Hons) Accounting (AC) Bachelor of Business Administration (Hons) Banking & Finance (BF) Bachelor of Economics (Hons) Financial Economics (FE) Bachelor of Arts (Hons) English Language (EL) Bachelor of Science (Hons) Biomedical Science (BM) Bachelor of Science (Hons) Statistical Computing and Operations Research (SC) Bachelor of Information Technology (Hons) Communications & Networking (CN) Bachelor of Information Technology (Hons) Computer Engineering (CT) Bachelor of Information Technology (Hons) Information System Engineering (IA) Bachelor of Computer Science (Hons) (CS) Bachelor of Engineering (Hons) Electronic Engineering (EE) Bachelor of Science (Hons) Construction Management (CM) Bachelor of Science (Hons) Quantity Surveying (QS) Bachelor of Engineering (Hons) Materials & Manufacturing Engineering (MM) Bachelor of Science (Hons) Software Engineering (SE) Bachelor of Engineering (Hons) Mechanical Engineering (ME) Bachelor of Engineering (Hons) Civil Engineering (CI) Bachelor of International Business (Hons) (IN) Bachelor of Economics (Hons) Global Economics (GE) Tutorial 1: General Introduction 1. Ice-breaking session. 2. Self introduction by tutor and students. 3. Briefing on unit plan. 4....

Words: 345 - Pages: 2

Premium Essay

Junior Volunteering Program Analysis

...This past summer I was able to participate in the Junior Volunteering Program at the KNAPP Medical Center. I was able to learn a lot how a hospital operates and how different patients act in different situations. I was able to dedicate a total of 100 hours of my summer to this program that I know will benefit me a lot in the future. Throughout my entire experience in the program, I was able to volunteer at the pharmacy department, nursery, nutrition services, education department, and accounting department. I am planning to major in biomedical science as a Texas A&M student to hopefully go into medical school one day. When I first heard about this summer program, I thought it would be a perfect opportunity for me to finally see whether or...

Words: 398 - Pages: 2

Free Essay

Singapore

...like Singapore avoid the economic recession and become one of the world-fastest growing economies? This study tries to response these questions analyzing different social, economic, political and cultural aspects. Manufacturing industry and exports driving growth recovery Singapore´s economy is very dependent on the global trade. In contrast with other recessions, this one has affected all the industries and services sectors globally, damaging the economy of the country. Manufacturing is the most important industry and the cornerstone of the country economy, accounting for 20% of Singapore´s GDP. In the course of the economic downturn Singapore evidenced a substantial downtrend in the manufacturing industry. Having overcome the worst of the global crisis, 2010 marked a strong change in the productive trend of Singapore when the Industrial production Index rose by 29.7% over the previous year mainly led by the biomedical manufacturing sector especially by pharmaceutical products. In addition other sectors such as semi-conductors that accounts for more than 10% of global production and chemicals, one of the most significant clusters in the economy of the country have acted as catalyzers of this unprecedented growth. Furthermore, during the global recession the number of exports was drastically reduced when demand from the OECD countries and China plunged from $477bn in 2008 to $391bn...

Words: 495 - Pages: 2

Free Essay

Economic

...In the 1990s, Singapore aspired to be a "global city" serving world markets and major multinational corporations. In 1965 Singapore became independence country. The lion city had become a manufacturing center with one of the highest incomes in the region and a persistent labor shortage Singapore was characterized by an export-oriented economy, relatively equitable income distribution, trade surpluses with the United States and other developed countries. Singapore is a small island had no resources other than its strategic location and the skills of its nearly 2.7 million people. In 1988 it claimed a set of economic superlatives, including the world's busiest port, the world's highest rate of annual economic growth (11 percent), and the world's highest savings rate (42 percent of income). Singapore is found that lived by international trade and operated as a free port with free markets. Its small population and dependence on international markets meant that regional and world markets were larger than domestic markets. In1988 the value of Singapore's international trade was more than three times its gross domestic product ( GDP). The country's year-to-year economic performance fluctuated unpredictably with the cycles of world markets, which were beyond the control or even the influence of Singapore's leaders. In periods of growing international trade.In 1985-1986, Singapore could reap great gains, but even relatively minor downturns in world trade could produce deep recession...

Words: 446 - Pages: 2

Premium Essay

Provide a Detailed Description of the Hris Application Used for Payroll.Undergrate

...DocuSign Envelope ID: FC254D70-C3FF-4834-8F39-41BB2414D642 Undergraduate Student Program/Specialization Declaration This form must be completed by undergraduate students declaring or requesting to change their degree program and/or specialization. To facilitate academic advising, students should submit the completed form to their home location’s appropriate academic administrator for approval prior to the close of registration during the first week of the session they wish to initiate the change. Requests for changes to a student’s program/specialization submitted to affect a prior session are NOT accepted or processed. Students must ensure that they are enrolled in courses that apply to their active program for the current session. Undergraduate students can declare enrollment in only one (1) degree program at any given time. Specializations are printed on transcripts; they are not printed on diplomas. Note: Students wishing to change from a bachelor’s to an associate degree program or associate to bachelor’s degree program may complete this form, unless the student has graduated or will be graduating from the initial program. If the student has graduated or will be graduating from a program, students must complete an application for admission. STUDENT DEMOGRAPHIC INFORMATION Home Campus/Center: Date: DSI #: Last Name: First Name: Phone #: Email: Current Program: Current Specialization: CHANGE PROGRAM AND/OR CHANGE/ ADD SPECIALIZATION...

Words: 745 - Pages: 3

Free Essay

Technical Report Topic Ideas

...liability  on site security--data, people or materials workplace violence outsourcing   new overtime regulations accounting:  inventory systems  pension/ stock option problems  corporate contributions to political parties  executive compensation  prevention of accounting fraud risk analysis agriculture:  land use management  genetically altered plants  control of crown gall in ornamental plants  methods of crop estimation/pricing/futures bioterrorism in crops   architecture:  options in environmental or natural disaster proof structures (floods, fires, earthquakes, etc.)  landscape designs for different environments (drought, boggy, etc.)  solar heating or cooling designs  lighting systems for large structures  restoration methods for old and/or historic buildings aviation:  wind shear problems and solutions  pilot retirement or retention  issues  training and safety procedures  global positioning systems  runway incursion solutions  aircraft fatigue  competing materials for aircraft structures screening/security issues options in aircraft for corporate use small airport management biology/pre-med liability insurance/malpractice reform options in diagnosis or treatment medicare/medicaid  issues wellness education physician education and training medical school curriculum updates--patient communication, grief training, etc.  biomedical engineering:  options in treatment/rehabilitation  artificial joints or prosthetics (foot joints, etc.)  competing...

Words: 682 - Pages: 3

Premium Essay

Introduction on Human Capital Activities

...Human capital management (HCM) is concerned with obtaining, analyzing and reporting on data that informs the direction of value-adding people management, strategic investment and operational decisions at corporate level and at the level of front line management. The defining characteristic of HCM is this use of metrics to guide an approach to managing people that regards them as assets and emphasizes that competitive advantage is achieved by strategic investments in those assets through employee engagement and retention, talent management and learning and development programmes. The Accounting for People Task Force Report (2003) stated that HCM involves the systematic analysis, measurement and evaluation of how people policies and practices create value. The report defined HCM as 'an approach to people manage¬ment that treats it as a high level strategic issue rather than an operational matter "to be left to the HR people" '. The Task Force expressed the view that HCM 'has been under-exploited as a way of gaining competitive edge'. As John Sunderland, Task Force member and Executive Chairman of Cadbury Schweppes pic commented: 'An organization's success is the product of its people's competence. That link between people and performance should be made visible and available to all stake¬holders.' Nalbantian el al (2004) emphasizes the measurement aspect of HCM. They define human capital as, 'The stock of accumulated knowledge, skills, experience, creativity and other relevant...

Words: 634 - Pages: 3

Premium Essay

Hi I Am Very Simple Boy. I Like to Meet New People.

...AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH Summer’ 2012-2013 FINAL EXAM SCHEDULE (Released on July 13, 2013) Day 1: July 29, 2013 (Monday) TIME CAMPUS 1 ,4 & 5 GLOBAL TRADE HEALTH AND SAFETY FINANCIAL ACCOUNTING E-GOVERNANCE URBAN DESIGN-2 E-MARKETING AUDITING CAMPUS 7 SECTIONS ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL A,B,C,D,E,F,G,H,I,J,K,L ALL ALL ALL M,N,O,P,Q,R,S,T,U ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL 9:3011:30 ELECTRICAL CIRCUITS 1 ELECTRICAL CIRCUITS 2 ELECTRICAL MACHINES-1 ADVANCE MACRO ECONOMICS POWER SYSTEM PROTECTION STATISTICS FOR SOCIAL SCIENCE INTERNATIONAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT STRATEGIC MANAGEMENT BANK FUND MANAGEMENT SOCIETY & THE ARCH. OF BENGAL BUSINESS COMMUNICATIONS 12-2 INTRODUCTION TO ENGLISH POETRY COMPILER DESIGN MACRO ECONOMICS BUSINESS COMMUNICATIONS ELECTRICAL MACHINES -2 MANAGEMENT AND MEDIA MARKETING TRAINING & DEVELOPMENT FINANCIAL STATEMENT ANALYSIS OPERATING SYSTEM-2 DISCRETE MATHEMATICS FINANCIAL MANAGEMENT CONSUMER BEHAVIOR ALGORITHMS 3-5 AGRICULTURAL ECONOMICS SYNTAX AND SEMANTICS DESIGN THEORY-I MATH METH OF ENG’G VLSI CIRCUIT DESIGN Released on July 13, 2013 Day 2: July 30, 2013 (Tuesday) TIME CAMPUS 1 ,4 & 5 WEB TECHNOLOGIES TAXATION FUNDAMENTALS OF COMPENSATION BRAND & PRODUCT MGMT. INTRODUCTION TO BUSINESS PROGRAMMING LANGUAGE 1 (CS) CAMPUS 7 SECTIONS ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL...

Words: 1161 - Pages: 5

Premium Essay

The Use of Health Information Technology in Healthcare

...The use of technology in healthcare Lenward Moore HS544 Diane Harrison-James Keller Graduate School of Management December 11, 2011 Table of Contents EXECUTIVE SUMMARY………………………………………………………………………………………………………3-4 DEFINE THE PROBLEM/ISSUE……………………………………………………………………………………………..5 IMPROVING QUALITY OF HEALTH……………………………………………………………………………5 IMPACT ON HEALTH CARE COST………………………………………………………………………………5 IMPACT ON HEALTH CARE DELIVERY SYSTEM………………………………………………………….5 LITERATURE REVIEW…………………………………………………………………………………………………………..6 WHAT IS HEALTH INFORMATION TECHNOLOGY……………………………………………………...6-8 INFORMATICS IN HEALTHCARE……………………………………………………………………………….8-9 BENEFITS OF INFORMATICS……………………………………………………………………………………9-10 PROBLEM ANALYSIS…………………………………………………………………………………………………………..10 THE COST OF HEALTH IT………………………………………………………………………………………10-11 HOW IT IMPROVED QUALITY………………………………………………………………………………….12 POSSIBLE SOLUTIONS…………………………………………………………………………………………………………12 (1). PERSONAL HEALTH RECORDS……………………………………………………………………………12 (2). E-PRESCRIBING…………………………………………………………………………………………………13 (3). COMPUTERIZED PROVIDER ORDER ENTRY……………………………………………………….13 SOLUTION AND IT IMPLEMENTATION……………………………………………………………………………14-15 JUSTIFICATION………………………………………………………………………………………………………………15-16 REFERENCES……………………………………………………………………………………………………………………..17 ------------------------------------------------- EXECUTIVE SUMMARY The use of...

Words: 3494 - Pages: 14