A Report of Drug X Transfer

Though this may not be out of the ordinary for WorldCom, this is not a correct accounting practice. The way the entries were made does not comply with the proper account practice according to GAAP. Detailed support is an important part of providing support to a journal entry and it explains the reason or purpose as to why the journal entry was created.

With the current systems of accounting for profit and losses the Dialysis Center records the pharmaceutical used in patient services as revenue and then records the same amount as an expense. Because general overhead is allocated on department patient service revenue the record in the system increases the general overhead allocation of the Dialysis Center.

In this case study, we deal with two separate agreements between SolvGen and Careway Pharma that are being audited for the possible sale of SolvGen to Direct Drugs, Inc. First, is the research and development agreement between SolvGen and Careway. And second, is the license and distribution agreement between the aforementioned. These agreements are both written and contractually binding and are within the scope of Multiple Deliverable Arrangements.

The income statement monitors a company's progress or position and looks at the profits or losses over a period of time (Shahwan, 2008). The balance sheet monitors the pharmacies financial situation in a snapshot of time. It compiles a pharmacy 's liabilities, assets, and owners' equity (Shahwan, 2008). Although these documents are important for accounting they do not give a good snapshot of the cash flow of the pharmacy, which may potentially indicate the success of the

b. The inventory write down recorded, as an expense by the company is $4.4 million. It is measured at lower of cost and net realizable value. Cost is measured by weighted average using standard cost method or

Blackmores，the leader of Australian pharmaceuticals with over 80-year history, keeps focusing on natural health care and becoming the first choice of the public. This essay will discuss the financial condition by analyzing the annual reports of Blackmores in the period from financial year 2010 to financial year 2012. It will be demonstrated by focusing on financial statements analysis, financial statements comments and comparison with Mcksson.

This paper will research the Product recall involving the Drug Company known as Merck, who produced the drug Vioxx use to treat osteoarthritis, and acute pain in adults. Looking at the relationships Merck had with government and lobbyist one can see what actions the drug company may have taken to lead them to this recall. In Addition, This paper will look at the actions Merck took in the approval process and recall of their drug. Using all information provided on this case this paper will decide whether Merck was ethically correct in bringing the drug to market and if they took the right steps in recalling it. Finally I will discuss the other stakeholder responsibilities and provide solutions to prevent this from happening in the future.

Mergers and acquisitions occur because executives from both the acquirer and target companies see the large amount of value that will result with a conjugation of each company’s assets. The acquisition will allow for the emergence of new identities and properties. Mergers and related acquisitions have occurred in a series of outbreaks. Recently, the pharmaceutical industry is seeing a rush of new mergers and acquisitions because of a combination of investor pressure and a narrowing window of opportunity. The reason for this current pattern is due to the fact that pharmaceutical companies and their associated board of directors believe that acquisitions are the clear way to grow revenues. The Merck Company’s acquisition of Medco as a pharmacy benefit manager are pursuing to increase their customer size and negotiating power, while developing new ways to serve customers. This acquisition will insert Merck within the trending consolidation of pharmaceutical benefit managers and drug suppliers, as this industry is becoming more than just an administrator and negotiator.

1. The concept of control has a long and storied history, starting with the Committee on Accounting Procedure’s (CAP) Accounting Research Bulletin No. 51, Consolidated Financial Statements issued in 1959. This early statement did not use the term control, but controlling financial interest. This was generally evidenced by ownership of a majority of the voting shares, and over time, majority ownership became the de facto indicator of control. Within the last five years, the FASB has addressed some of these issues regarding Variable Interest Entities and Research and Development Arrangements. Utilizing the FASB Accounting Standards Codification (which may be accessed at http://aaahq.org/ascLogin.cfm using the USERNAME AAA52114 and the Password Skt1wI3), identify the current definition of control, and evaluate whether Pharmco controls Disco after the LPO.

Xenical was requested to treat obesity, which is an approved use by the FDA (Food and Drug Administration). However, Medicare Part D did not cover drugs to treat anorexia, weight loss or weight gain.

A company’s resources include two types: tangible and intangible. The former is asset that can be observed and counted, such as, office furniture, production equipment, computer, and warehouse, etc. Unlikely, the intangible resources are assets that are rooted deeply in the company’s history, accumulate over time, and are relatively difficult for competitors to learn and copy, such as brand, intellectual property and reputation, etc.

The biggest change in Abbott’s balance sheet can be seen in the composition of its asset accounts. In 2006, % of the firm’s assets were current, while 69% were of the long-term variety. In 2010, however, the portion of current assets increased by 7%. This increase in current assets is most visible in cash and short-term investments (4% in 2006 to 9% in 2010) and corresponds with a higher level of uncertainty in today’s economy. The fact that Abbott Laboratories has chosen to increase the value of liquid assets on its balance sheet indicates low returns on long-term investments and a preference of keeping cash on hand rather than reinvesting in the business.

The intangible asset is controlled by the organization. This means the organization has the power to obtain future economic benefits from the asset.

First, it takes an extremely long time to develop a new drug, and only a very small portion of all projects is successful. Projects that the company starts today will determine its financial performance 10-15 years later. Therefore, careful planning of R&D projects is very important for the long-term stability of the company.

One of these is with regards to goodwill and intangible assets with identifiable useful lives.