Happy Holidays from Pharma Dollars and Sense

We're taking some much needed time off from our coverage of Pharma to celebrate the season with our loved ones. We want to sincerely thank you for your readership, your comments and your participation. Here are our highest rated articles from 2009:

• Pharma Dollars and Sense: Will principle based accounting improve financial reporting?
• Pharma Dollars and Sense: IFRS versus US GAAP
• Pharma Dollars and Sense: Canada to switch to IFRS by 2011

We'll be back in January with more coverage.

We wish you Happy Holidays!

Complimentary Webinar: Assessing the Impact of Healthcare Reform on the Business of Medicare: An Interview with Gorman Health Group

Space is limited.
Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/504426600
Mention Priority code: P1507W1BLOG

John Gorman, CEO, Gorman Health Group, along with Jean LeMasurier, Senior Vice President, Public Policy, Gorman Health Group will examine the current state of US healthcare reform, and its short and long term impact on Medicare plans including the financial, operational and strategic implications of the proposed bills.

Healthcare Investment & Transaction Summit, New York City - Early Bird Ends This Friday, December 11

IIR’s Healthcare Investment & Transaction Summit (HITS), now taking place on January 28-29, 2010 in New York City, is the deal-making industry event of the year! Join us today and be one of the many to benefit from the year’s most prestigious healthcare deal-making event. HITS brings together the industry’s financial giants, with buyers and sellers, and the brokers who connect them and the bankers to subsidize their deals. Deals are happening in healthcare, and those with creativity, patience, and capital are benefiting from the current economy. There is no doubt the time to act is upon us, and the place to hit the deal out of the park is HITS 2010!

Gain access to industry thought leaders, including:

AMBIENT HEALTHCARE INDIANA ORTHOPAEDIC HOSPITAL
AMERICAN HOSPICE INGENIX CONSULTING (United Healthcare)
APAX PARTNERS JRG VENTURES
BLUE CROSS BLUE SHIELD OF LINDEN LLC
CAMDEN PARTNERS MONROE CARELL JR. CHILDREN'S HOSPITAL
CAPITAL BLUECROSS NASHVILLE HEALTH CARE COUNCIL
CMS NATIONAL RENAL ALLIANCE
CITI ODYSSEY HEALTHCARE
DEUTSCHE BANK SECURITIES PASSPORT HEALTH COMMUNICATIONS, INC.
EXPERIAN PROSKAUER ROSE LLP
FAULTLINE VENTURES REHABCARE
GE CAPITAL RIVERSIDE PARTNERS
GENERAL ATLANTIC LLC SHATTUCK HAMMOND
GENERAL ATLANTIC PARTNERS SIGNATURE HOSPITAL CORPORATION
GOLDMAN SACHS SPECTRUM EQUITY INVESTORS
GREAT HILL PARTNERS STROUDWATER ASSOCIATES
HEALTH EVOLUTION PARTNERS BLUE CROSS BLUE SHIELD OF TENNESSEE (BCBST)
HOSPICE COMPASSUS THE CARLYLE GROUP
HOULIHAN LOKEY

Download the brochure and take a look at the all-star speaker list and agenda featuring this year’s most prominent industry issues! Visit our website for further program details at www.healthcaredealsummit.com.

Plus, be sure to register by this Friday, December 11, to save $200 off the standard rate!

We hope to see you in January in New York City!

Complimentary Webinar: Assessing the Impact of Healthcare Reform on the Business of Medicare: An Interview with Gorman Health Group

December 15, 2009

2-3PM EST

Space is limited.
Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/504426600

Mention Priority Code: P1507W1BLOG

John Gorman, CEO, Gorman Health Group, along with Jean LeMasurier, Senior Vice President, Public Policy, Gorman Health Group will examine the current state of US healthcare reform, and its short and long term impact on Medicare plans including the financial, operational and strategic implications of the proposed bills.

About the Speakers:

Jean D. LeMasurier
Senior Vice President for Public Policy
Gorman Health Group

Jean LeMasurier joined Gorman Health Group after a 30 year career with the Centers for Medicare and Medicaid Services (CMS). Jean provides strategic planning and consulting services to Medicare Advantage Health Plans, Medicare Part D Prescription Drug Plans, drug companies and employers on programs under the Medicare Modernization Act.
Her areas of focus include health policy and health care reform and advising plans and employers on retiree options. Engagements include analysis of Medicare market opportunities, strategic advice on CMS legislative and regulatory requirements, audits and gap analyses to assure implementation of regulatory compliant programs.
Jean is also engaged in policy analysis, public speaking and educational and training activities.
As a senior CMS career official, Jean was responsible for the leading the $40 billion Medicare Managed care programs for many years, including serving as the Director of Policy and the Acting Director/Deputy Director of Operations and Regulatory Oversight. Jean also served as a Senior Advisor in the Employer Operations and Policy Group which implemented the employer provisions of the Medicare Modernization Act.
Jean also worked as a professional staff member on the Senate Finance Subcommittee on Health.

John K. Gorman
Chief Executive Officer

John Gorman is CEO of Gorman Health Group, a company he founded in 1996 (under its predecessor name, Managed Care Compliance Solutions) to provide Medicare regulatory compliance advisory services to healthcare payers. Under John’s leadership, Gorman Health Group has since emerged to beco

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendees
Required: Mac OS® X 10.4 (Tiger®) or newer

Health care reform: Private Insurers paying for federal lobbying

A recent article written by Zenei Cortez at the California Progress Report looks at how the current finances in the health care industry are being geared towards federal lobbying. In fact, the article state that the nation's top 13 private health insurers and their trade group, America's Health Insurance Plans (AHIP) spent nearly $23 million in federal lobbying to tilt reform in their direction. Cortez believes that the insurance industry is spending money that will go on to harm the American public in terms of higher profit for the private insurance companies while affecting the quality of care Americans receive due to the prices of health insurance. Do you agree with this article?

What do you foresee happening to the financial aspects of healthcare reform in terms of both the insured and the healthcare companies?

Adopting IFRS Key to global financial success

According to the Associated Press, federal regulators stated Monday that it's critical for the United States along with other countries to adopt one international accounting standard. By all countries having the same policies, we would better avoid another economic crisis. Both those on Wall Street and in the Accounting industry agree with this statement. US companies have the option to begin adopting the new accounting standards next year. Read the full article here.

Name Change for FAS 157

The Wall Street Journal Blog recently wrote about the name change for FAS 157. It will now be known as Topic 820. This rule currently requires companies mark their assets to market every quarter. With the old rule, the assets were held at cost. Read more about the name and rule change here.

Indiana Government converting to centralized accounting system

According to Fox 28 of South Bend, Indiana, the Hoosier government will be converting to one single accounting system. The complete transition will take place by September 16. This has been in the works for years, and over 3,000 state employees have been trained on the new system. Read the full article here.

What does Kroeker’s appointment mean for IFRS?

On Tuesday, the Securities and Exchange Commission appointed James L. Kroeker the permanent chief accountant at the agency. Many in the industry thought SEC’s Mary Schapiro would select someone with a little more resistance to IFRS. How will the industry respond to a big four Chief Accountant? And most importantly, what does Kroeker’s appointment mean for the timelines surrounding IFRS adoption?

You have an opportunity right around the corner to hear from the industry’s brightest minds regarding IFRS, mark-to-market, fair market value, and much more at this year's Pharma Financial Forum. But you need to act now and register by Friday, August 28, so you can save $200! See the brochure here.

James L. Kroeker becomes SEC's permanent cheif accountant

The Wall Street Journal stated that James L. Kroeker will become the permanent chief accountant for the Securities and Exchange Commission. He has been serving as the chief accountant since January. He will be overseeing accounting interpretations, professional practice issues and international accounting matters.

How do you think Kroeker's new position will affect the United States and it's adoption of IFRS?

Controlling your risk when converting to IFRS

The Journal Of Accountancy recently published a post that looks at how companies can take precautions when it comes to converting from GAAP to IFRS. One of the key areas that will be affected during the conversion will be IT, as many of the systems will be changing due to the new accounting methods. Read the full article here.

FASB's changes on disclosing private information

According to CFO, there is debate as to how companies are handling lawsuits and their accounting rules and disclosures. Under the new rules of FASB, companies would not have to disclose any information that they feel is prejudicial or confidential. This would include not disclosing any information about the money they pay to investors to settle disagreements.

Last September, when the board decided companies would have at least another year before having to comply with the new rules, it agreed to collect more feedback by asking companies to do sample runs of its first proposal and the alternative version currently being crafted. However, only a few companies have shown interest in participating.

Read the full article here.

Adopting IFRS slowing

In an article recently at Reuters India, they look at how the current global economy is just one of the latest factors holding up the adoption of IFRS globally. Due to the credit crisis, many countries have seen the need to adopt a more consistent and transparent accounting system. However, with the US failing to provide a date as to when they'll be adopting the system. The G20 Finance ministers are meeting in London next month, which many hope will be the key to getting the adoptoin of IFRS on track. Read the full article here.

Fair market value rules may expand

According to Bloomberg, last week, FASB decided to consider expanding fair market value rules. Accountants could end up expanding mark-to-market across all financial assets. Read the full article here.

New network for accountants

A new social network for accountants has been launched. Hub Street is a social network that brings together accountants, lawyers, and lenders to create connections in the industries. It also has a unique aspect for social networks.

Fox Coaching Associates CEO Nancy Fox explains, “Let’s face it – it’s not what you know, but who you know. Unlike most online and face-to-face networks, HubStreet takes the work out of networking for lawyers, accountants and lenders by bringing them together with the right quality connections — professionals and experts that are relevant to their business.”

Read the full article here.

Former AIG Executive settling accounting charge

Maurice "Hank" Greenberg, Former American International Group Chief Executive, will pay $15 million to settle an accounting charge.

According to the article,

Greenberg and Smith were responsible for "material misstatements" that helped AIG create the false impression that the insurer had consistently met or exceeded key earnings and growth targets, the SEC claimed.

Read the full article here.

How are you handling the transition to IFRS standards?

The SEC estimates the transition from US GAAP to IFRS will cost each early adopter $32 million over the first three years. Although the convergence for large accelerated manufacturers doesn’t occur until 2014, you can start reducing your $32 million spend by planning for a smooth, timely transition today.

• Have you planned for the cost associated with transitioning to IFRS?
• Do you understand the impact it will have on your accounting team?
• Will you get approval to bring in an accounting firm to help with the transition and when you do will it be too late?

The SEC continues to send mixed messages about the IFRS roadmap - This October, The Pharma Financial Forum will prepare you for these changes by providing a blueprint for making a seamless transition to IFRS standards. Participate in a featured session entitled “Determine

How Quickly to Move Toward the Adoption of IFRS”, which offers insights on:
• Ascertaining a more accurate sense of when IFRS implementation will trickle down to smaller companies
• Pinpointing which processes within the conversion to focus on over the next two years
• Selecting strategies for keeping up with standards without overinvesting in the transition to IFRS

Be sure to visit our website for more information and complete program details.

**If you register by this Friday, August 7, you'll receive $300 off the standard registration price! Find out more here.

Tweedie encourages US to join IFRS

At WebCPA, they divulge that Sir David Tweedie has encouraged the United States to come up with an adoption plan for IFRS. Although Tweeide has and FASB Chairman Bob Hertz have worked closely together to weave US GAAP into IFRS, the new leader of the SEC, Mary Schapiro has not said whether or not she has approved of the latest model of the roadmap to adoption.

During the American Accounting Association's annual accounting meeting, Tweedie stated: "This is a very interesting moment for us, a once-in-a-lifetime moment. Where is the USA? That is a question I am asked all around the world. The convergence program is designed to reduce the cost of transition. FASB is riding two horses: U.S. GAAP and trying to converge at the same time, but so are we. We get a lot of criticism over the favored-nation status toward the United States. The European Federation of Accountancy Bodies has just talked about how the point has been reached where there have been diminishing returns from convergence with U.S. GAAP, particularly as more and more countries, including major economies such as Japan and India, move toward direct adoption of full IFRS, and the IASB should change its strategy and concentrate exclusively on major improvements and simplifications of IFRS for the short term. We think that’s wrong. If you’re going to have global standards, we need the U.S., but it can’t go on indefinitely. We’ve been converging for seven years. We have a timetable to finish in 2011. It’s designed to fit these major economies — Korea, Canada, Japan, India — who are converging that year. We have to finish this year.”

Read the full write up here.

CPAs knowledge in IFRS and GAAP

The IFRS blog recently asked if your CPA was bilingual. Although the United States has not yet fully committed to adopting IFRS, many other countries throughout the world have begun to take the steps to adopt this new worldwide accounting system. EM sees a new state of accounting in 2012, that where either the US has adopted IFRS or an accounting world where IFRS and GAAP coexist. So, he believes CPAs should begin now learning how to account in both systems. Many accounting classes throughout colleges have already begun to integrate this new system. What do you think? Even though it's not clear if accounting will be in the IFRS system by 2012, should CPAs begin acquainting themselves now? If you are a CPA, what's your stance?

Tenent Healthcare Corp improves returns

According to Fierce Healthcare, Tenent Healthcare Corporation has posted better returns than previously expected for the second quarter. By holding down costs, offsetting growing bad debts, and lowering patient volumes they managed to push revenue up 4.5% and improve their free cash flow.

Number of accounting degrees is up

According to an article at The Journal of Accountancy, 66,000 Masters or Bachelors degrees were awarded to accounting graduates in the 2007-2008 school year. This is up 3.5% from the 2006-2007 academic year. Read some of the other findings in the AICPA 2009 Trends Report here.

Current financial crisis not caused by change in accounting rules

According to the AP, The Financial Crisis Advisory Group has stated that changes in accounting rules did not cause the most recent credit crisis. They did state that there are weaknesses in the application rules that may reduce the credibility in the financial reporting. To see all of their current views, please read the article here.

Tata Motors profits rise after change in accounting rules

According to Bloomberg, Tata Motors, who won Jaguar and Land Rover, saw an increase in profit after the Indian government changed accounting rules. They allowed companies to alter provsions for mark-to-market losses in foreign currency loans. This resulted in a profit rise of 58%. Read more here.

Bank of America has new Chief Accounting Officer

Yesterday, Neil Cotty was named the new Chief Accounting Officer at Bank of America. His previous position was chief financial officer at a global wealth and investment management firm. Read more about their new selection here.

Accouting for leases may change soon

An article at CFO updates us on the current progress of an accounting rule that could change the way companies account for leases. Any company that leases plants, property or equipment would be responsible for FASB predicts this new rule will be in place by 2011.

Under the current rule, companies distinguish between capital lease obligations, which appear on the balance sheet, and operating leases (or rental contracts), which do not. Based on FASB's and IASB's discussion paper on the topic, released earlier this year, the new rule will likely require companies to also capitalize assets that have traditionally fallen under the "operating lease" category, making them appear more highly leveraged.

Read the full article here.

Accounting leaders meet in New York City

This past Friday, the Global Accounting Alliance met in New York City to discuss whether or not financial accounting should be simplified.

A few of the statements from the roundtable were:

Paul Cherry, chairman of the International Accounting Standards Board’s Standards Advisory Council and former Canadian Accounting Standards Board chairman.:
“We have an antiquated conceptual framework and coming off the charts is a rigorous rethink of disclosure. Without (improving) these essential building blocks I don’t see any real prospect for meaningful simplification of the standards.”

Wayne Carnall, the chief accountant of the SEC’s Division of Corporate Finance, stated:
“[In the U.S.,] we look at everything very short term. Everything becomes incrementalized because we want an immediate solution. It seems we’re constantly making changes. If we could step back and look at issues on a longer-term basis, it would help.”

Read all thoughts here at the Journal of Accountancy.

Mark to market accounting

The Economist has a very interesting article looking some accounting rules that have different views from different sides. On one side, some believe that loans, securities, and frauds should be accounted for at market prices. On the other side, managers believe that assets should be accounted for at cost and only be written down when losses are likely to occur. The IASB has stepped in and set some new rules on this topic, and they want a system that is not going to change when the economic cycle travels up and down. Read the full article here.

San Diego may change pension accounting

In a recent article at the Union-Tribune of San Diego, they talk about the short-comings of many of the current shortcomings cities are facing when it comes to pension plans. San Diego, in particular, is thinking of changing their accounting methods in order to improve the problems they are facing because of the decrease in investments in their pension funds. It would currently increase their short term savings by millions of dollars. What do you think of plans like these?

Brazil adopts IFRS

According to Bloomberg, in the process of adopting their accounting system to IFRS, the Valor Economico of Brazil announced plans to adopt an accounting rule that would decrease the value of assets at companies that receive government consessions. It would not allow certain assets to be booked on utilities balance sheets. Read the article here.

Fare Value Accounting affected by current market situation

According to an article at BizTimes, the current state of the marketplace has damaged the effectiveness of Fair Value Accounting, otherwise known as market-to-market accounting. This rule calls for companies to reflect the current market value of their assets of the balance sheets.

P. J. Patel, CFA, senior vice president of Valuation Research Corp, who conducted the study stated, "Respondents to this survey came down hard on Fair Value Accounting. While in less volatile times, Fair Value Accounting has improved transparency, in unusual times like we've seen, FVA becomes more difficult to implement and understand.”

Read the full story here.

Pharma Financial Forum

During a time of uncertainty where the SEC continues to issue mixed signals regarding the IFRS roadmap, industry leaders are left to implement a more efficient transition to new reporting and accounting standards. Solid decisions must be made in order to determine how much time and money should be spent on new accounting measures.

The Pharma Financial Forum 2009 is a premier event designed to provide accounting, reporting, and corporate governance executives with novel strategies for operating in the rapidly evolving drug manufacturing industry, and an outline for making a smooth transition to IFRS standards. At this year’s conference, you will hear case studies from accounting and regulatory leaders who provide an unparalleled combination of current strategies that will enable you to resourcefully position your accounting operations.

Be sure to visit our website for more information and complete program details.

Don’t miss out on this opportunity to stay ahead of the game. Join us today and walk away with an action plan for 2010.

Cash flow and banks

In a new article at CFO, they look at the differences in how banks account for operating cash flow. Better accounting styles would account for a better understanding of the true financial health of the institutions. The article states that banks can't be reliably compared to eachother. Read the full article at CFO.

Germans loosen accounting rules

According to Forbes, German banks responded well to the news that the government would recend an accounting rule to help banks boost spending in the current economy. This ruling will ease up on the capital requirements governing a bank. The rule, created to be helpful in bull markets harms the banks in bear markets. Read what this ruling would do for German banks here.

Accounting firms looking at carbon and climate change accounting

The New York Times recently looked at how the Big 4 are looking to get into a new type of accounting by building carbon and climate change shops in the US. This new industry could eventually be large, rivaling the likes of the tax compliance and financial disclosure accounting sectors. In Europe, the Big Four, which consists of Deloitte Touche Tohmatsu, Ernst & Young, KPMG and Pricewaterhouse Coopers, are already well known for their carbon footprint accounting. These executives are now switching offices and moving back to the United States.

Eric Hespenheide, global managing partner of internal audit services at Deloitte and one of the leaders of its sustainability practice, said this:
"We're clearly leveraging our experience in Europe ... to build out and anticipate as best we can what impacts that will have on U.S. businesses. If the U.S. decides to adopt some reduction targets as a country, the stimulus and the impact on our U.S. economy will be magnitudes greater than what we've seen in any other individual country around the world."

Read the full article here.

Types of accounting

At the Chillicious blog, they recently laid out the different types of accounting, which are mainly determined by the different types of firms they serve.

• Private or Industrial Accounting
• Public Accounting
• Governmental Accounting
• Fiduciary Accounting
• National Income Accounting

For an in-depth look at these different types of accounting, read here.

Canada to switch to IFRS by 2011

According to Reuters, public Canadian companies are slow to adapt the new IFRS accounting system. With over 100 companies adopting IFRS, the slow implementation of IFRS could leave some companies rushing to convert to the system before official deadline switch of January 1, 2011.

Yet the study, conducted by CFERF, FEI Canada, and sponsored by PricewaterhouseCoopers, showed that 12 percent of the 147 public companies surveyed had not yet taken the first step of starting their initial diagnostic assessments.

About 80 percent of public companies remained short of the halfway mark in their overall conversion process.

Read the full story here.

New rule proposed for government bankruptcies

According to Pensions and Investments, GASP has proposed a new accounting rule for governments who are filing for bankruptcy:

For pension and other post-employment benefits, a government could “reject” its plans and related obligations, the exposure draft states. “In that case, the rejected unfunded benefit obligations become general unsecured debt of the government” and the plan participants “would need to present their claims in the creditor’s committee together with all other general creditors of the government” for consideration of payment.

Alternatively, a government would not reject the obligations but bargain to reduce them, according to the statement from the Governmental Accounting Standards Board.

Read the full article here.

IFRS versus US GAAP

At the Accounting Principles blog, Malcolm McKay recently looked at the differences between US GAAP versus the IFRS systems of accounting. He pointed out that according to Audit Integrity, there are no noticable differences between the two systems. He also states that US GAAP has tools that allow for better reporting. What do you think? Is it important to join the rest of the world and keep books in the same accounting method or look towards US GAAP, which according to reports, allows for better analysis?

An Objective Look at International Financial Reporting Standards (IFRS), the report by Audit Integrity, can be read here.

Contingent Liabilities

Another Accounting TimeBomb looks at contingent liabilities in today's post. The article defines a contingent liability as "a possible obligation depending on whether some uncertain future event occurs, or a present obligation but payment is not probable or the amount cannot be measured reliably."

The article points to contingent liabilities as a reason for the current credit problem facing the world today and states that investors should be aware of contingent liabilities before they invest in a company. Read the full article here.

Should states open up accounting to the public

In a recent editorial at PennLive, they express the need for states to open up their public accounting records to the public. The tax payers should know what their taxes are being spent on. They can also begin to have a say on the budget cuts, because it's their money that is funding the state, therefore the public should have a say on what says and what goes.

What do you think? Should State accounting records be opened to the public?

Will principle based accounting improve financial reporting?

In a recent article at The Vancouver Sun, they look at Canada's current switch of public companies to the IFRS accounting system. They believe that the standards are important, but one must also consider the quality of the accounting and financial statements that are in use. They did a study and found out that a principle based approach to accounting can improve the reporting, but the auditors must also have a principle based approach to auditing as well. Read the full article to see how they found that accounting was affected by the different approaches.

Businesses won't be taxed on personal use of cellphones

According to Yahoo!, the IRS would like to repeal the law that states businesses or employees must pay taxes on the personal use of business cell phones. IRS Commissioner Doug Shulman told Congress that advances in technology have made this tax obsolete. Read the full article here.

Obama encourages universal accounting standards

According to WebCPA, Obama released a White Paper yesterday encouraging reform so that American companies have the same standards of accounting by the end of the year. Obama believes that it would allow for better supervision of financial firms. This white paper also calls for the creation of the new Consumer Financial Protection Agency. Read more about the whitepaper here.

Lilly China adds to staff

According to China Daily, Pharma giant Lilly China will begin to add nearly 2,000 positions to its company, including accounting and R&D. Read more about Lilly China and the other companies planning to grow their Pharma companies here.

Capital Standards under review

According to Reuters, there are new standards that could affect the way banks look at off-balance sheet vehicles. This could cause banks to have to move assets throughout books and affect their assets.

Some financial firms created special entities separate from their balance sheets to avoid reporting requirements or to reduce the amount of capital they needed to hold to satisfy regulatory requirements. As the financial storm gathered, uncertainty about some of those vehicles helped undermine confidence in banks and accelerated the financial crisis.

The new standards are aimed at improving accounting and disclosure associated with those vehicles.

Read the full story here.

IFRS and the IT world

In a new article at Computer World, they look at the upcoming decision on converting the United States' accounting system to IFRS, which is regarded globally as the universal accounting standards. This will: help provide transparency information to investors, make it easier to understand financial statements, and help companies make more efficient investment decisions. The decision will be made in 2011 as to whether to adopt the process, and all conversions to the system will have to take place by 2014. The article looks at how CIOs will have to change their current practices. Read it here.

Mark Olson to retire

Mark Olson, the Chairman of the Public Company Accounting Oversight Board, has announced that he will retire July 31. This board polices the US Audit Industry. For more on Olson's work throughout his time on the board, read here.

Pharma deals with taxes and working overseas

In a recent blog post at the Wall Street Journal Health Blog, they look at what different Pharma companies are facing when they go abroad to conduct business.

The dispute has to do with something called “earnings stripping,” in which a multinational company reduces its taxes by claiming interest deductions for payments to a related overseas unit. The company claims deductions on its U.S. tax return, but no money ultimately leaves the parent company’s coffers, and publicly reported profit doesn’t change. The WSJ explains the nitty gritty. Glaxo didn’t comment, but in court filings has said the payments were properly classified as tax-deductible interest.

Read the full article here.

Vermont to Drug Companies, Document Pay to Docs

The Vermont state government is looking to signing requiring drug and device makers to make public all of the money they give to doctors and others in health care. According to the New York Times, each drug and device maker must document the names and amounts given to medical practitioners. Sarah Rubenstein reports that, the state has already been out front when it comes to disclosure of drug-company pay to doctors, publishing an annual report on compensation such as consulting and speaker fees, travel expenses, gifts and food. The law being pushed by Vermont's government not only includes device makers; but it bans all free meals and will require specifics on contributions to individual doctors, the paper says. An exception: Pay for clinical research on products under FDA review does not have to be disclosed.

You Business Impact Assessement

At the IFRS USA blog, they suggest conducting a impact assessement. How will your financial statements be affected by the new accounting system. The IFRS USA blog provided a list:

• The FASB & IASB have several topics on their convergence Agenda including:
• Financial Statement Presentation (Performance Reporting)
• IFRS 2 Share-based Payment Amendment – group cash-settled share-based payment transactions Impairment
• Income Taxes – Reconsideration of IAS 12
• Insurance Contracts – Phase II (Comprehensive Project)
• Joint Ventures – Reconsideration of IAS 31 Leases
• Liabilities (was part of Business Combinations – Phase II)
• Post-employment Benefits including Pensions
• Rate-regulated Activities
• Related Party Disclosures
• Revenue Recognition
• (IFRS for) Small and Medium-sized Entities (also referred to as Private Entities and Non-publicly Accountable Entities)
• Intangible Assets Extractive Activities IFRS XBRL Taxonomy
• Conceptual Framework Project Update
• Business Combinations Project Update
• Financial Statement Presentation
• Revenue Recognition Project Update

Are CFO’s confused over IFRS?

Dennis Howlett writes, there’s a lot of talk about IFRS implementation in the US but the survey results suggest there is a significant amount of eduction to be delivered. If professionals are unclear about the requirements or its impact, it’s almost impossible for them to form an opinion as to the appropriateness of its application.

The survey that Howlett refers to was from a Grant Thornton study on attitudes to IFRS, the particular excerpt can be found on Howlett's post here.

Read Howlett's entire article by clicking here.

The future for US accounting

In a recent report at WebCPA, they look at the current push to have the USA transition from the GAAP accounting system to IFRS. Industry leaders and accounts are currently calling for a more certainty in the transition between the two. Another roadblock may be the views of Mary L. Schapiro on the plan of adoptoin of the new system.

D.J. Gannon, national leadership partner at Deloitte & Touche’s IFRS Center of Excellence, stated:
“They want certainty. Five to seven years is sufficient time for most people to get through what they have to get through.”

Read the full article here.

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