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.