Indian Pharmaceutical Industry: Accounting and Disclosure Practice of Intellectual Property
The Accounting World, The Icfai University Press, June 2008
Posted: 17 Nov 2009
Date Written: February 2, 2009
Abstract
The accounting treatment of intellectual property, amortisation method and disclosure practice in pharmaceutical industries have been discussed in reference to accounting standard 26.On analyzing three leading pharmaceutical companies viz Ranbaxy limited, Dr. Reddy Laboratories limited and Glaxo Smithkline pharmaceutical (India) ltd, it is found that the present system of reporting of IP in pharmaceutical companies are not adequate.All three companies fails to disclose whether an intellectual property is self acquired or developed. The biggest challenge is establishing a consensus about 'what' and 'how' to report it.
Keywords: intellectual property, amortisation, impairment losses, disclosure
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