This publication summarizes pertinent accounting solutions for the pharmaceutical, life sciences and medical device industry and highlights how industry-specific factors should be considered in relation to the authoritative literature. Because the accounting and financial reporting for specific transactions will reflect each company’s specific facts and circumstances, we cannot address every nuance in this publication. For example, the structure in licensing, manufacturing, and research and development arrangements leads to variations in contracts, corporate structures, and accounting requirements. Therefore, the solutions we present are meant to provide a general framework for determining the appropriate accounting for situations that are commonly encountered in the industry; however, individual facts and circumstances may give rise to a different answer. The contents of this publication are based on guidance that is effective as of January 1, 2024. Therefore, whenever considering the solutions contained in the publication in future periods, it is important to keep in mind that the accounting guidance may have been superseded.
This chapter addresses accounting considerations for research & development costs, intangible assets, and sales and marketing costs. FAQs within this chapter explore, among other things, the following:
This chapter addresses the accounting considerations for disputes between two parties related to intellectual property rights. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for manufacturing and supply. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for business combinations and asset acquisitions. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for leases from both a lessee and lessor perspective. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for revenue from contracts with customers. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for warranty obligations in a contract. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for research and development arrangements. FAQs within this chapter explore, among other things, the following:
This chapter addresses key income tax accounting considerations. FAQs within this chapter explore, among other things, the following:
This chapter addresses accounting considerations for advertising and promotional expenditures and product recalls.
PwC Pharmaceutical and Life Sciences Practice
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This publication has been prepared for general informational purposes and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance, or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.
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PwC clients that have questions about this US GAAP - Issues and solutions for pharmaceutical and life sciences guide should contact their engagement partners. Engagement teams that have questions should reach out to one of the contacts below.
Health Industries Assurance Leader, Global Engagement Partner, PwC US
Patrick Durbin
Partner, National Office Health Industries Sector Leader, PwC US
Jeroen van Paassen
Partner, National Office, PwC US