This month the Accounting and Auditing Update focuses on the pharmaceutical sector and highlights key matters relating to accounting, financial reporting and regulatory areas relevant to this sector.
In this publication, we have highlighted key areas of impact due to adoption of Ind AS: revenue recognition, research and development expenditure, business combinations, intangible assets and government grants on pharmaceutical sector.
We also carry this month the results of a survey that we ran with a number of leading pharmaceutical companies on the key regulatory changes that they face. These include Ind AS, the Companies Act, 2013, Income Computation and Disclosure Standards (ICDS) and proposed Goods and Services Tax (GST).
In this edition of the Accounting and Auditing Update, we also cast our lens on the principles of operating segments under Ind AS and their likely impact on financial reporting on the pharmaceutical companies. We have also highlighted some of the areas in this sector which are expected to be impacted by the implementation of ICDS.
Apart from accounting and financial reporting aspects, the pharmaceutical sector faces various direct and indirect tax issues. For example, tax deductibility of business promotion expenses, various policies on export benefits and impact of the proposed GST. Our articles provide an overview on these tax issues.
Finally, our publication also includes our regular round up of regulatory updates.
This issue includes :
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.