Hello everyone,
My company, a biotechnology research firm, has a contract to temporarily license our technology to another company for them to conduct research. An upfront fee is paid at the signing of contract, while the rights to the technology is licensed at the same time. At the end of the contract date, all rights to the technology are transferred back to our company. We are trying to figure out the correct way to account for this on our tax reporting.
I have read a PWC document entitled "IFRS - Issues and Solutions for the Pharmaceuticals and Life Sciences Industries Vol III" which explains many scenarios well. However, it does not include anything similar to our situation. It should serve as a good reference to anyone unfamiliar with the industry.
I would greatly appreciate any help. Thank you.
My company, a biotechnology research firm, has a contract to temporarily license our technology to another company for them to conduct research. An upfront fee is paid at the signing of contract, while the rights to the technology is licensed at the same time. At the end of the contract date, all rights to the technology are transferred back to our company. We are trying to figure out the correct way to account for this on our tax reporting.
I have read a PWC document entitled "IFRS - Issues and Solutions for the Pharmaceuticals and Life Sciences Industries Vol III" which explains many scenarios well. However, it does not include anything similar to our situation. It should serve as a good reference to anyone unfamiliar with the industry.
I would greatly appreciate any help. Thank you.