Consequences of different accounting standards
Answers
Explanation:
The effect of different sets of accounting standards in the pharmaceutical industry. It is based on the analysis of the reported financial results of five pharmaceutical comapnies1, that identifies the material differences in accounting standards between IFRS and U.S. GAAP. It identifies a number of accounting differences relating to impairment losses, development costs, and litigation provisions. The study examines the effect of each of these reporting differences on the company’s level and volatility of reported earnings. The effects are expressed in terms of changes in financial ratios based on the financial statements and data presented in form “20-F . This study reaches the conclusion that, relative to the use of U.S. GAAP,