Swot Analysis Of Biovail 's Largest Listed Pharmaceutical Company

1839 Words Jun 1st, 2016 8 Pages
Biovail is Canada’s largest listed pharmaceutical company. It specializes in the development, manufacture, and marketing of pharmaceutical products. Biovail operates its facilities in Canada, the United States and with corporate headquarters in Ontario, Canada.
FOB Biovail:
The company should recognize revenue at the moment or in the period when the product leaves Biovail’s shipping dock at the warehouse since in that precise moment both ownership and responsibility over the goods is transferred from Biovail to the client.
FOB Destination:
The company should recognize revenue at the moment or in the period in which product is delivered to the Distributor’s facility since in that precise moment both ownership and responsibility over the goods is transferred from Biovail to the client
The generally accepted accounting standards (GAAP) explain the method of recognition of revenue. This case does not provide any extra evidence on persuasive information, bills, purchase order, invoices that support the transaction between distributor and Biovail including the number sales of Biovail. This case provides clear information in the fixed price of Biovail to buyer which can be easily calculated. Also, Biovail covered the aspect of collection from buyers. The main issue is delivery in which the Biovail’s delivery and services create the problem between distributors and company. “Free on board” (FOB) shipping as a base, considers that revenue from the product, which left facility on 30…
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