Health · Clinical Research · Beauty

Audit in health and beauty –
clinical research, – pharma and premium brands

I audit entities from the health and beauty sector with an understanding of the sector's accounting specifics: clinical research contract revenue recognition, intangible asset valuation and accounting for companies with brand portfolios.

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20+

Years of experience

Segments: CRO and premium beauty

100%

Project confidentiality

48h

Response time for urgent enquiries

Clinical research (CRO)

Premium cosmetics industry

Brand and intangible asset valuation

Research contracts (IFRS 15)

Pharmaceutical regulations

Foreign groups in Poland

PE portfolio company audit

Projects from the health and beauty sector

Selected case studies – health and beauty

Projects for entities from the health and premium beauty sector – industries with high confidentiality requirements.

Audit of a clinical research company (CRO)

Situation

A Contract Research Organisation (CRO) company conducting clinical trials on behalf of pharmaceutical corporations. Revenues recognised based on IFRS 15.

Action

Audit of the financial statements with particular focus on revenue recognition (fixed price, time & material, milestone-based / payment per client), receivables valuation and assessment of project cost completeness.

Result

Unqualified opinion.

Methodological recommendations implemented by the client

Industry challenges

Key accounting challenges in health and beauty

Research contract accounting (CRO)

Multi-year clinical research contracts require precise measurement of the degree of completion and assessment of when revenue meets the criteria for recognition under IFRS 15.

Brand and intangible asset valuation

Cosmetics brands, patents and formulations are assets of key value but difficult to value – their recognition and impairment tests require industry knowledge.

R&D costs – capitalisation vs. period costs

When can the costs of research into a new product be capitalised under IAS 38? In the pharmaceutical and cosmetics sector this decision often has a material impact on results.

Regulations and registration requirements

The costs of registering drugs and medical devices, their recognition and amortisation require knowledge of both accounting standards and the regulatory specifics of the industry.