Challenges and Opportunities for Pharmaceutical Enterprises in Adopting International Accounting Standards for Medicines

Sattorov T.  T.

Sattorov T. T. Trainee Assistant of the Department of Accounting, Samarkand Institute of Economics and Service

Keywords: Uzbekistan, pharmaceutical industry, accounting standards, international standards, financial reporting, stakeholders

Abstract

This scientific article examines the challenges and opportunities for pharmaceutical enterprises in Uzbekistan in adopting international accounting standards for medicines. The study compares the accounting standards and practices in Uzbekistan with international standards, such as International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP), and identifies potential benefits and drawbacks of adoption. Interviews with stakeholders, including accountants, auditors, and regulators, were conducted to gather insights and perspectives on the topic. The results show that adoption of international accounting standards can improve transparency, comparability, and credibility of financial statements, but may also require significant resources and expertise. The study provides recommendations for pharmaceutical enterprises in Uzbekistan to address the challenges and seize the opportunities in adopting international accounting standards for medicines.

References

1. Deloitte. (2018). Pharmaceutical Industry Accounting and Financial Reporting Update. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/life-sciences-health-care/us-lshc-accounting-update-pharmaceutical-industry-2018.pdf
2. Ernst & Young. (2019). Accounting developments in the pharmaceuticals and life sciences sector. Retrieved from https://www.ey.com/Publication/vwLUAssets/ey-accounting-developments-in-the-pharmaceuticals-and-life-sciences-sector/$FILE/ey-accounting-developments-in-the-pharmaceuticals-and-life-sciences-sector.pdf
3. Financial Accounting Standards Board. (2015). Update 2015-11—Inventory (Topic 330): Simplifying the Measurement of Inventory. Retrieved from https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168623681&acceptedDisclaimer=true
4. International Accounting Standards Board. (2015). IFRS 15 Revenue from Contracts with Customers. Retrieved from https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
5. International Accounting Standards Board. (2020). International Financial Reporting Standards. Retrieved from https://www.ifrs.org/issued-standards/list-of-standards/
6. KPMG. (2019). Accounting considerations for pharmaceutical companies. Retrieved from https://home.kpmg/content/dam/kpmg/xx/pdf/2019/05/accounting-considerations-for-pharmaceutical-companies.pdf
7. PricewaterhouseCoopers. (2018). Pharmaceuticals and Life Sciences Accounting Update. Retrieved from https://www.pwc.com/us/en/industries/pharmaceuticals-life-sciences/publications/pharmaceuticals-life-sciences-accounting-update-q1-2018.pdf
8. United States Securities and Exchange Commission. (2021). Codification of Financial Reporting Policies: Topic 5—Revenue Recognition. Retrieved from https://www.sec.gov/interps/account/sabcodet5.htm
9. Qudratovich, E. A. . (2022). The Impact of Cash Flows on the State and Results of the Financial Activity of the Enterprise. European Journal of Life Safety and Stability (2660-9630), 18, 65-71.
10. Eshonqulov Akmal Qudratovich. (2022). CONCEPT, ECONOMIC ESSENCE AND EVOLUTION OF APPROACHES TO THE DEFINITION OF CASH FLOWS OF AN ENTERPRISE. Galaxy International Interdisciplinary Research Journal, 10(4), 709–715.
11. Eshonqulov Akmal Qudratovich. (2022). CASH FLOW STATEMENT AS ONE OF THE BASIC FORMS OF FINANCIAL ACCOUNTING STATEMENTS. European Scholar Journal, 3(2), 23-25.
12. Qudratovich, E. A. . (2022). Information Capabilities and Methods of Compiling a Cash Flow Statement. American Journal of Economics and Business Management, 5(2), 53–56.
13. Qudratovich, E.A. (2022). INTERNATIONAL AND NATIONAL FINANCIAL REPORTING STANDARDS ON CASH FLOWS. Web of Scientist: International Scientific Research Journal, [online] 3(4), pp.1081–1085.
14. Qudratovich, E.A. 2022. Cash Flows of the Enterprise: The Essence and Methods of Their Evaluation. International Journal on Integrated Education. 5, 3 (Mar. 2022), 96-100.
15. Qudratovich, E. A. (2022). Basis of Efficient Cash Flow Management of the Enterprise. International Journal on Economics, Finance and Sustainable Development, 4(12), 5-11.
16. Qudratovich, E. A. . (2023). Cash Flow Statement is one of the Important Sources of Information on the Cash Flows of an Enterprise. Journal of Ethics and Diversity in International Communication, 3(2), 40–47.
17. Qudratovich, E. A. (2023). Market Conditions as One of the Factors Influencing the Formation of an Enterprise’s Cash Flows. International Journal on Orange Technologies, 5(3), 32-37.
18. Qudratovich, E. A. (2023). The Role of the Statement of Cash Flow in the Financial and Economic Life of a Business Entity. Spanish Journal of Innovation and Integrity, 16, 98-106.
19. Qudratovich, E. A. . (2023). Issues and Solutions in Applying International Standards for Accounting Cash and Cash Equivalents in Uzbekistan. Middle European Scientific Bulletin, 35, 35-40.