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17-04-2019 (Singapore)

P40092 Accounting and IFRS Reporting for Pharmaceutical Industry
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Accounting and IFRS Reporting for Pharmaceutical Industry

17 – 18 April 2019 | Mandarin Orchard Hotel Singapore

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Register 2 Delegates & the 3rd attends FREE!


Key Learning Outcomes

  • Understand the 5-step model of recognising revenue under IFRS 15
  • Identify the performance obligations in the contract
  • Accounting and reporting issues relating to pharma manufacturing & contract manufacturing
  • Accounting for revenue sharing versus profit sharing versus milestone payments
  • Accounting for sale returns – saleable vs expired
  • Issues relating to leasing & construction of pharma manufacturing facilities
  • Issues relating to asset acquisition and subsidiaries
  • Accounting for intangible assets (e.g. in-licensing arrangements, R&D expenditure, options over IP, research upfront payments)
  • Overview of the IFRS 9 and how it impacts pharmaceutical industry
  • IAS 12, deferred taxes and recognition of taxes
  • Challenges with goodwill/asset impairment
  • Hedge accounting for pharmaceutical industry
  • Identifying lease contracts on IFRS 16 and accounting for changes in arrangement
  • What’s changing on leasing standard from 2019?

 Who Should Attend

This course is intended for all professionals serving in accouting or financial functions across the life science sectors including pharmaceutical manufacturing, biotechnology research, CROs, CMOs, and are involved in preparing and interpreting consolidated financial statements. Job functions include: Accountants

  • Accountants
  • Financial/Cost Controller
  • Budget Analysts
  • Accounting Managers
  • Auditors
  • Finance Analysts
  • CFO
  • Investment Analysts
  • Consultants and Advisors

Very Hands-On and Interactive:

  • Numerous examples to explain the concepts
  • Case Studies and group discussion for recap of concepts



Packages Price
2 Day TrainingSGD $3495SGD $3295Early BirdEarly Bird

Early Bird Rate: Register And Pay On Or Before 22 Feb 2019

Register 2 Delegates & the 3rd attends FREE!
Group rate is based on normal rate of 2-day main conference package only.
For Group Registrations, email or call +65 6508 2401


  • Special Group Discount pricing is applicable to groups of 2 or more delegates from the same organisation registering for the same event, at the same time.
  • Fee stated is the discounted price PER DELEGATE. Only one discount applies – either the early bird rate OR the Special Group Discount.
  • All fees stated include luncheons, refreshments and complete set of documentation. It does not include the cost of accommodation and travel.
  • A 7% Goods & Services Tax (GST) is applicable to all Singapore based companies for Singapore venue.


Chetan Hans

Director – Financial Reporting Advisory Services, Grant Thornton Singapore


Day 1


  1. IFRS 15 – Overview of the new revenue standard
  • Understanding the 5-step model of recognising revenue
  • Identify the contract(s) with the customer
    • Contract combinations
    • Contract modifications
    • Accounting of shipment and insurance element
  • Identify the performance obligations in the contract
  • Determine the transaction price
    • Accounting of typical schemes, free goods, chargebacks, non-cash incentives
    • Accounting of sale returns – saleable v/s expired
  • Allocate the transaction price to the performance obligations
  • Recognise revenue when (or as) each performance obligation is satisfied
    • Timing of revenue recognition – dispatch/shipment/delivery/acceptance
    • Timing of revenue recognition – stock transfer v/s sale – role of depo/ intermediary/customer
  1. Other issues
  • Typical issues relating to B2B sales
  • Typical issues relating to government procurement contracts
  • Accounting of joint development contracts
  • Accounting for IPD arrangements
  • Accounting for CRO arrangements – identification of performance obligations, success payments, integrated services, application of constraint
  • Issues relating to Pharma manufacturing & contract manufacturing • Dossier/out-licensing arrangements with (or without) manufacturing obligations
    • Identification of the distinct performance obligations
    • Pattern of rev rec for milestone payments
    • Accounting for revenue sharing v/s profit sharing v/s milestone payments – implications of floors, tiered pricing, delays in receiving revenue reports, allocation in case of multiple performance obligations


  1. Issues relating to leasing & construction of Pharma manufacturing facilities:
  • greenfield v/s brownfield
  • enabling assets
  • temporary structures
  • shared utilities
  • phased commissioning
  • captive facilities
  • borrowing cost
  1. Issues relating to acquisition of assets:
  • Insurance costs
  • Maintenance/warranty costs
  • Embedded software
  • Spares taken with purchase
  • Future commitments for spares, along with initial purchase
  • Componentization
  1. Spares/replacements/repairs accounting:
  • Change parts
  • Regulatory software upgrades
  • Maintenance for compliance for regulatory inspections etc.
  • Relocation/rearrangements
  • Foreign currency issues relating to asset purchases
  • Typical embedded lease issues for pharma facilities

Day 2


  • Issues relating to accounting for in-licensing arrangements
  • Research and Development (R&D) expenditure accounting
  • Accounting of options over IP
  • Accounting for compound internally developed
  • ‘In process R&D’ in case of business combinations
  • Upfront payments to conduct research


  1. IFRS 109 – overview of the new financial instruments standard
  • Debt v/s equity issues on R&D financing structures.
  • Classification and measurement: financial asset and financial liabilities
  • Amortised cost
  • Fair value through profit o r loss
  • Fair value through OCI
  • Accounting for derivatives
  • Expected credit loss model
  1. Embedded derivatives
  2. Hedge accounting in pharma
  • Fair value hedge
  • Cash flow hedge
  • Net investment hedge
  1. Accounting for debt modificationstions


  • Overview of IAS 12
  • Recognition of Current Tax and deferred taxes
  • Recognition of deferred tax asset for loss making companies
  • Presentation and Disclosures


  1. Determination of CGUs
  2. Assessment of impairment indicators
  • Expiry of patents or changes in legislation covering patents;
  • Development of a drug by a competitor with a superior potential;
  • General advances in the manner of treating particular diseases;
  • National health care reforms impacting reimbursement policies of insurance companies, etc
  1. Impairment of patents, trademarks, know -how, marketing tie ups, goodwill
  2. Typical challenges with goodwill/asset impairment with products in gestation period

 IFRS 16

  1. Identifying lease contracts
  • Lab facility on lease
  • Medical equipment given on lease to a hospital
  1. Assessment of operating versus finance lease
  2. Accounting for finance leases
  3. Accounting for operating leases
  4. Impact of renewal / extension options
  5. Impact of contingent charter payments
  6. Impact of residual value guarantees
  7. Accounting for changes in estimates/ circumstances/ agreement after lease inception
  8. Accounting for sale and leaseback transactions
  9. New leasing standard – what’s changing from 2019
  • New definition of Lease
  • Lessee’s Accounting
  • Lessor’s accounting
  • Sale and Lease back transactions


  1. Understanding and applying IFRS 10 Consolidated
  • Concept of de facto control, voting and other rights
  1. Joint arrangements under IFRS 11 Joint Arrangements
  • Joint operations – parties involved with joint control have rights to the assets and obligations for the liabilities
  • Joint ventures – parties involved with joint control have rights to the overall assets of the arrangement
  1. Initial accounting for new subsidiaries

when & where

17 - 18 Apr 2019

Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li

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