Additionally, an entity will need to consider the impact of such errors on its internal controls over financial reporting – refer to Section 5 below for further discussion. A fundamental pillar of high quality public financial reporting is reliable, comparable financial statements that are free from material misstatement. Accounting changes and errors in previously filed […]

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Therefore, the royalty exception would apply and Company A would not account for this arrangement as a derivative. Company A engages a contract research organization (CRO) to perform research activities for a period of two years in connection with a drug compound related r&d accounting to the treatment of HIV. The CRO is well known […]