Electrical Submersible Pump Analysis and Design

Description

Electrical Submersible Pump Analysis and Design May 30, 2001

• premature equipment failure
• significant savings over the life of the well
• gas lift
• flow rate
• fluid
• well
• pressure
• performance
• point
• pump

Sujets

• Pressure
• Performance
• Tool

Informations

• Publié par: nevug
• Nombre de lectures: 14
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

US GAAP
Issues and Solutions for the Pharmaceuticals and Life Sciences Industries
Contents Value Chain Print Quit Foreword
Accounting under US Generally Accepted Accounting Principles (US GAAP) In reality, every company deals with accounting issues that should refect
continues to evolve and in today’s world where there is a growing demand for the facts and circumstances of their particular situation. The solutions in this
greater transparency and heightened regulatory scrutiny; the need to ensure publication provide a framework for determining the appropriate accounting
the proper accounting for transactions has never been greater. At the same answer but individual fact patterns may give rise to a different answer. We
time convergence with IFRS is becoming a reality rather than a possibility. cannot hope to address every situation that occurs – there is too much
Many non-US companies have already transitioned to IFRS and the SEC may creativity in licensing arrangements to achieve that. Rather, the solutions
provide US companies with an opportunity to make a similar switch. cover several general situations. As new trends emerge, we will consider
further editions of this publication.
Many publications have discussed the broader implications of US GAAP and
IFRS but, to date, none has addressed the particular accounting issues the We hope you fnd this publication useful in understanding the accounting
pharmaceutical and life sciences sector faces. The aim of this publication for the transactions you encounter in your business. Further, we hope that
is to highlight the industry-specifc factors which need to be considered, by stimulating debate around these topics, we will encourage consistent
and to provide an opinion on the most pertinent accounting solutions for practices by the pharmaceuticals and life sciences companies in fnancial
commercial situations under US GAAP. Separate publications have been reporting under US GAAP. This consistency will be critical to the continued
produced by us addressing IFRS and together with this publication provide acceptance and usefulness of pharmaceutical and life science entities’
a comprehensive picture of certain industry related matters that companies fnancial statements.
are addressing.
Simon Friend
Global Pharmaceuticals and Life Sciences Leader
PricewaterhouseCoopers LLP, UK
Mark Simon
US Pharmaceuticals and Life Sciences Leader
PricewaterhouseCoopers LLP, US
Contents Value Chain Print Quit Contents
Page Page
The value chain and associated US GAAP accounting issues 4 30 Treatment of development supplies 34
Capitalisation of internal development costs: timing 5 3 Treatment of inventory of ‘in-development’ drugs 35
Capitalisation of internal development costs when regulatory approval 3 Treatment of inventory of ‘in-development’ generic drugs 36
has been obtained in a similar market 6 33 Advertising and promotional expenditure 37
3 Capitalisation of development costs for generics 7 34 Presentation of co-marketing expenses 38
4 Development expenditure once capitalisation criteria are met 8 35 Presentation of co-marketing income 39
5 Examples of research and development costs 9 36 Development of alternative indications 40
6 Useful economic lives of intangibles 0 37 Line extension development costs 4
7 Commencement of amortisation 38 Cost incurred for performance comparisons 4
8 Indefnite-life intangible assets 39 Development costs for limited markets 43
9 Indications and timing of impairment for intangibles 3 40 Cost-plus contract research arrangements 44
0 Exchange of intangible assets with no continuing involvement 4 4 Fixed-fee contract research arrangements 45
Exchange of intangible assets with continuing involvement 5 4 Patent protection costs 46
Accounting for receipt of listed shares in exchange for a patent 6 43 Accounting for research which results in a development candidate 47
3 Accounting for receipt of unlisted shares in exchange for a patent 7 44 Third-party development of own intellectual property 48
4 Accounting for receipt of shares subject to trading restrictions in exchange for a patent 8 45 Joint development of own intellectual property 49
5 Complex arrangements for in-licensing agreements including capitalisation 9 46 External development of own intellectual property with buy-back options 50
6 Upfront payments to conduct research with access to the research 0 47 Collaboration agreement to develop a drug – separable arrangements 5
7 Payments made to conduct research and/or development 48 Exchange of listed shares for a patent 5
8 Payments received to conduct development 49 Accounting for acquired early-stage projects 53
9 Upfront payments received to conduct development: initial recognition 3 50 Cost of collaboration arrangements 54
0 Upfront payments received to conduct development: interim recognition 4 5 Production technology development expenditure 55
Upfront payments received to conduct development: completion 5 5 Bifurcating components of a collaboration agreement 56
Donation payment for research 6 53 Development loan – market terms 57
3 Loans received to fund research and development purposes 7 54 Development loan – below market terms 58
4 Segmental reporting of internal research and development 8 55 Sales target milestone with fair royalty 59
5 Segmental reporting of external research and development 9 56 Annual sales target milestone with fair royalty 60
6 Treatment of trial batches in development 30 57 Sales target milestone with below-market royalty 6
7 Carrying value of property, plant and equipment 3 58 Sales target milestone with no royalty 6
8 Treatment of validation batches 3 59 Abnormal validation costs 63
9 Carrying value of inventory 33 60 Impairment of development costs prior to use 64
Contents page
Contents Value Chain Print Quit Contents
Page
6 Impairment of development cost after regulatory approval 65
6 Single market impairment accounting 66
63 Impairment of an acquired early-stage project 67
64 Reversals of impairment loses (cost model) 68
65 Impairment testing and useful life 69
66 Amortisation method of development – intangible assets 70
67 Amortisation life of development – intangible assets 7
68 Presentation of capitalised development costs 7
69 Recognition of raw materials as inventory until a decision is made about its usage 73
70 Pre-launch inventory produced before fling 74
7 Net costs of validation batches sold 75
7 Net gain on sale of validation batches sold 76
73 Accounting for vaccine cultures in manufacturing of pharmaceutical products 77
74 Receipts for out-licensing 78
75 Receipts for conducting development 79
76 Revenue from collaboration arrangements 80
77 Payments received to conduct development – continuing involvement 8
78 Advertising and promotion costs 8
79 Segmental reporting for external research & development expenditure 83
80 Accounting for the cost of free samples 84
8 Classifcation of co-promotion royalties 85
8 Presentation of development supplies 86
Contacts 87
Contents page
Contents Value Chain Print Quit 3The value chain and associated US GAAP accounting issues
Capitalisation and amortisation R&D related issues Manufacture Sales & MarketingExternally sourced R&D
Capitalisation of internal development Payments received to conduct Exchange of intangible assets with no Carrying value of property, plant and Advertising and promotional
costs: timing development expenditurecontinuing involvement equipmentUpfront payments received to conduct Exchange of intangible assets with Presentation of co-marketing expensescosts when regulatory approval has development: initial recognition Treatment of validation batches
been obtained in a similar market
Accounting for receipt of listed shares in Capitalisation of development costs for Presentation of co-marketing incomeCarrying value of inventorydevelopment: interim recognition
exchange for a patentgenericsTreatment of development suppliesDevelopment expenditure once Cost incurred for performance Accounting for receipt of unlisted shares development: completion
capitalisation criteria are met comparisonsin exchange for a patent
Donation payment for research
Treatment of inventory of ‘in-Examples of research and development
Accounting for receipt of shares subject Loans received to fund research and development’ drugs Sales target milestone with fair royaltycosts to trading restrictions in exchange for a development purposes
Useful economic lives of intangibles patent Annual sales target milestone with fair Segmental reporting of internal research
Commencement of amortisation royaltyand developmentComplex arrangements for in-licensing development’ generic drugs
agreements including capitalisationIndefnite-life intangible assets Segmental reporting of external
Sales target milestone with below-research and development Patent protection costsIndications and timing of impairment for Upfront payments to conduct research market royalty
Treatment of trial batches in with access to the researchintangibles
development Production technology development
Development of alternative indications Sales target milestone with no royaltyPayments made to conduct research expenditureAccounting for research which results in
and/or developmentLine extension development costs a development candidate
Abnormal validation costs Single market impairment accountingCost-plus contract research Joint development of own in