Скачать или смотреть Key accounting implications for life sciences companies | The Audit Statement

As the #biotechnology funding environment continues to challenge growing organizations, those who understand the corresponding #audit and #accounting implications can equip themselves to budget and allocate resources appropriately and maintain financial reporting timelines.

Brian Winne, RSM US LLP assurance senior manager and #lifesciences senior analyst, and Brianna Ferriero, RSM US LLP life sciences audit policy leader and assurance senior manager, joined RSM’s “The Audit Statement” to discuss what life sciences companies need to know about those accounting issues.

They covered the following topics:
• The evolving #biotech funding environment, including struggles in raising funds, uptick in initial public offering (IPO) market in 2024 and smaller private offerings, often as bridge financings.
• Going concern analysis and disclosure, including assessing cash needs, realistic goals and achievable targets, exclusion of unsecured funding and management's role in explaining to investors and stakeholders.
• Tranched financings, including structure and impact, criteria for legal detachment and separate exercisability and valuation requirements and resource implications.
• Embedded derivatives, including need for bifurcation and separate valuation and benefits of early consideration.

Key takeaways include:
1. Going concern disclosures are common in biotech and should be clearly explained to stakeholders.
2. Financing structures may include freestanding instruments that require separate valuation.
3. Early consideration helps with budgeting, resource allocation and financial reporting timelines.

Visit our website for more audit and assurance insights: https://rsm.us/4g5KsWq

Chapters:
0:00 Introduction
0:37 The evolving biotech funding environment
1:10 Going concern analysis and disclosure
3:45 Trenched financings
6:00 Embedded derivatives