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Analysis

2021 Life Sciences Industry Accounting Guide

Insights and guidance on life sciences accounting issues

COVID-19 has directly affected many life sciences entities—from disrupting the regulatory approval process and impacting contract R&D arrangements to continually challenging forecasting. How can financial departments keep up with the accounting issues that matter most? Our 2021 Life Sciences Industry Accounting Guide is a great place to start.

Life sciences accounting: Guidance on what matters

Finance and accounting professionals in the industry face complex issues and must exercise significant judgment in applying existing rules to matters such as research and development (R&D) costs, acquisitions and divestitures, consolidation, contingencies, revenue recognition, income taxes, financial instruments, and financial statement presentation and disclosure.

Deloitte’s 2021 Life Sciences Industry Accounting Guide addresses these and other relevant topics affecting the industry this year. Download the full report or explore the highlights and downloads for individual sections below.

COVID-19 Related Accounting & Reporting Considerations

Many life sciences entities are facing challenges associated with the economic conditions resulting from efforts to address the impact of the COVID-19 pandemic. We encourage you to review the COVID-19–related accounting section of our 2021 guide, which discusses the pervasive and challenging accounting and financial reporting considerations associated with COVID-19 that specifically pertain to the life sciences industry.

Featured highlights

More life sciences industry accounting and financial reporting topics

Our 2021 guide also includes a final chapter that briefly addresses the following life sciences industry accounting subjects:

  • Government assistance
  • Inventory
  • Common-control transactions
  • Discontinued-operations reporting
  • Carve-outs
  • Cost of doing business
  • Going concern
  • Health tech
  • PCAOB changes to the auditor’s report—critical audit matters
  • Structured trade payable arrangements
  • Foreign currency accounting considerations

This document contains general information only and Deloitte is not, by means of this document, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this document.

About Deloitte
As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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