benchmark study of the application of IFRS in the Life ...

Description

Benchmark study
benchmark study of the of the application in
application of IFRS in the Europe of IFRS in the
Life Sciences Sector.*Life Sciences Sector*At PricewaterhouseCoopers Nederland, over 4,500 professionals work together
covering various disciplines: Assurance, Tax and Human Resource Services,
and Advisory. On the basis of our corporate philosophy, Connected Thinking,
we provide sector-specific services and seek novel solutions. Not only for large
national and international companies, but also for medium-sized and smaller
businesses as well as for government entities and non-profit organisations.
As an independent part of a worldwide network comprising 140,000 colleagues in
149 countries, we can rely on extensive knowledge and experience which we share
with each other, with our clients and with their stakeholders. We seek unexpected
angles, make surprising connections, feel involved and work together from our
strengths.
www.pwc.nl Assurance • Tax • AdvisoryContents
Introduction 4
Executive summary 6
Benchmark of key IFRS topics for the Life Sciences sector 9
First-time adoption of IFRS 9
Share-based payment 14
Research and development expenditure 19
Business combinations including goodwill and other intangible assets 24
Revenue recognition 27
Deferred tax 34
Other adjustments and accounting areas 38
Making it more than just about the numbers – embedding IFRS 39
Appendix A: Overview of companies included in the benchmark 40
Your contacts 41
Legal ...

Sujets

• Revenue generating unit
• PricewaterhouseCoopers
• Marteau (outil)
• Acquisition de titres
• Company (Glass)
• Exemption de Saint-Samson

Informations

• Publié par: Voin
• Nombre de lectures: 80
• Langue: English

Extrait

Benchmark
study
of
the
application
in
Europe
of
IFRS
in
the
Life
Sciences
Sector*

At
PricewaterhouseCoopers
Nederland,
over
4,500
professionals
work
together
covering
various
disciplines:
Assurance,
Tax
and
Human
Resource
Services,
and
Advisory.
On
the
basis
of
our
corporate
philosophy,
Connected
Thinking,
we
provide
sector-specific
services
and
seek
novel
solutions.
Not
only
for
large
national
and
international
companies,
but
also
for
medium-sized
and
smaller
businesses
as
well
as
for
government
entities
and
non-profit
organisations.

As
an
independent
part
of
a
worldwide
network
comprising
140,000
colleagues
in
149
countries,
we
can
rely
on
extensive
knowledge
and
experience
which
we
share
with
each
other,
with
our
clients
and
with
their
stakeholders.
We
seek
unexpected
angles,
make
surprising
connections,
feel
involved
and
work
together
fr om
our
strengths.

www.pwc.nl

Assurance
•
Tax
•
Advisory

Contents

Introduction

Executive
summary

Benchmark
of
key
IFRS
topics
for
the
Life
Sciences
sector
First-time
adoption
of
IFRS
Share-based
payment
Research
and
development
expenditure
Business
combinations
including
goodwill
and
other
intangible
assets
Revenue
recognition
Deferred
tax

Other
adjustments
and
accounting
areas

Making
it
more
than
just
about
the
numbers
–
embedding
IFRS

Appendix
A:
Overview
of
companies
included
in
the
benchmark
4

Your
contacts

Legal
Disclaimer

3

4

6

9 9 14 19 24 27 34

38

9

0

41

42

Introduction

As
from
1
January
2005
most
listed
companies
in
Europe
have
adopted
International
Financial
Reporting
Standards
(“IFRS”).
However,
the
transition
to
and
reporting
under
IFRS
continues
to
be
a
challenge
for
the
Life
Sciences
sector
to
addr ess.
This
is
specifically
true
because
at
this
moment,
early
2007,
the
window
for
Initial
Public
Offerings
of
Life
Sciences
companies
seems
to
have
opened
up
again
and
as
a
result
several
companies
are
currently
preparing
themselves
for
such
an
IPO,
including
the
necessary
transition
to
IFRS.

The
transition
to
IFRS
is
more
than
just
an
accounting
issue.
IFRS
covers
everything
from
mergers
and
acquisitions
to
leasing,
revenue
recognition,
and
accounting
for
employee
benefits.
It
requires
substantial
changes,
including
new
accounting
policies,
and
more
disclosure
than
before.
Transition
to
IFRS
will
in
most
cases
impact
the
reported
profitability
of
the
businesses
themselves,
but
will
also
influence
contract
negotiations
and
other
operational
matters.

Life
Sciences
companies
are
no
exception.
IFRS
substantially
influences
this
sector,
not
only
in
terms
of
practical
transitional
issues,
but
also
in
respect
to
reportable
earnings,
net
asset
value,
the
level
of
gearing,
and
return
on
capital
employed.

In
this
IFRS
benchmark
study
we
have
analysed
the
financial
statements
of
20
European
Life
Sciences
companies
that
have
prepared
their
financial
statements
for
2005
in
accordance
with
IFRS
(an
overview
of
the
companies
is
included
in
appendix
A).
Of
the
20
companies
analysed,
13
companies
were
first-time
adopters
of
IFRS
as
from
1
January
2005;
2
companies
are
based
in
the
UK
and
the
other
18
on
the
European
main
land
(Switzerland,
Sweden,
The
Netherlands,
Belgium,
Germany
and
France).
When
we
r “companies”
in
this
study,
we
mean
their
financial
statements.

We
have
summarised
the
impact
of
the
transition
to
IFRS
and
considered
the
take
up
by
companies
of
the
exemptions
that
were
available
to
them
under
IFRS
1
“First
time
adoption
of
International
Accounting
Standards”.
Next
we
assessed
the
impact
IFRS
has
on
the
financial
reporting
of
Life
Sciences
companies
by
performing
a
benchmark
of
certain
key
accounting
topics
for
companies
in
the
sector.
Where
applicable,
we
have
also
included
observations
from
a
survey
in
which
PricewaterhouseCoopers
in
the
UK
analysed
the
first
IFRS
financial
statements
of
25
companies
in
the
techMARK
mediscience
index.
The
findings
from
the
UK
analysis
were
published
in
January
2007
in
the
publication
“IFRS
and
its
impact
on
Financial
Reporting
for
the
Life
Sciences
Sector”.

4

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to

PricewaterhouseCoopers