Transcription of Accounting and Financial Reporting Update Interpretive ...
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Life SciencesAccounting and Financial Reporting Update Interpretive Guidance on ContingenciesMarch 20182 ContingenciesIntroductionASC 450 defines a contingency as an existing condition, situation, or set of circumstances involving uncertainty .. that will ultimately be resolved when .. future events occur or fail to occur. In the life sciences industry, contingencies often arise as a result of product liability issues; patent litigation cases, such as suits filed against the entity for patent infringement ( , generic at-risk launches); and compliance issues related to pricing, promotions, or manufacturing standards.
Mar 03, 2016 · eloitte Life Sciences: Accounting and Financial Reporting Update approach may be a reasonable solution. In fact, we have found that many companies are not able to reliably estimate the fair value of the litigation component of any settlement and have not objected to judgments made when registrants have measured this component as a residual.
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