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This excerpt taken from the ELN 6-K filed Aug 28, 2009. c
Revenue recognition
There are different rules under IFRS and U.S. GAAP in
relation to the recognition of revenue arising under contracts
which include multiple arrangements such as the sale of a
product and related R&D or manufacturing arrangements.
Although the revenue recognised will be the same under both IFRS
and U.S. GAAP over the life of the contract, the different
requirements can result in differences in the timing of revenue
recognition.
This excerpt taken from the ELN 6-K filed Mar 30, 2009. c Revenue
recognition
There are different rules under IFRS and U.S. GAAP in
relation to the recognition of revenue arising under contracts
that include multiple arrangements such as the sale of a product
and related R&D or manufacturing arrangements. Although the
revenue recognised will be the same under both IFRS and
U.S. GAAP over the life of the contract, the different
requirements can result in differences in the timing of revenue
recognition.
This excerpt taken from the ELN 20-F filed Feb 26, 2009. Revenue
Recognition
We recognize revenue from the sale of our products, royalties
earned and contract arrangements in accordance with the
SEC’s Staff Accounting Bulletin No. 104,
“Revenue Recognition,” (SAB 104), which
requires the deferral and amortization of up-front fees when
there is a significant continuing involvement (such as an
ongoing product manufacturing contract) by the seller after an
asset disposal. We defer and amortize up-front license fees to
the income statement over the “performance period.”
The performance period is the period over which we expect to
provide services to the licensee as determined by the contract
provisions. Generally, milestone payments are recognized when
earned and non-refundable, and when we have no future legal
obligation pursuant to the payment. However, the actual
accounting for milestones depends on the facts and circumstances
of each contract. We apply the substantive milestone method in
accounting for milestone payments. This method requires that
substantive effort must have been applied to achieve the
milestone prior to revenue recognition. If substantive effort
has been applied, the milestone is recognized as revenue,
subject to it being earned, non-refundable and not subject to
future legal obligation. This requires an examination of the
facts and circumstances of each contract. Substantive effort may
be demonstrated by various factors, including the risks
associated with achieving the milestone, the period of time over
which effort was expended to achieve the milestone, the economic
basis for the milestone payment and licensing arrangement and
the costs and staffing to achieve the milestone. It is expected
that the substantive milestone method will be appropriate for
most contracts. If we determine the substantive milestone method
is not
Table of Contents
appropriate, we apply the proportional performance method to the
relevant contract. This method recognizes as revenue the
percentage of cumulative non-refundable cash payments earned
under the contract, based on the percentage of costs incurred to
date compared to the total costs expected under the contract.
This excerpt taken from the ELN 20-F filed Feb 28, 2008. Revenue
Recognition
We recognize revenue from the sale of our products, royalties
earned and contract arrangements in accordance with the
SEC’s Staff Accounting Bulletin No. 104,
“Revenue Recognition,” (SAB 104), which requires
the deferral and amortization of up-front fees when there is a
significant continuing involvement (such as an ongoing product
manufacturing contract) by the seller after an asset disposal.
We defer and amortize up-front license fees to the income
statement over the “performance period.” The
performance period is the period over which we expect to provide
services to the licensee as determined by the contract
provisions. Generally, milestone payments are recognized when
earned and non-refundable, and when we have no future legal
obligation pursuant to the payment. However, the actual
accounting for milestones depends on the facts and circumstances
of each contract. We apply the substantive milestone method in
accounting for milestone payments. This method requires that
substantive effort must have been applied to achieve the
milestone prior to revenue recognition. If substantive effort
has been applied, the milestone is recognized as revenue,
subject to it being earned, non-refundable and not subject to
future legal obligation. This requires an examination of the
facts and circumstances of each contract. Substantive effort may
be demonstrated by various factors, including the risks
associated with achieving the milestone, the period of time over
which effort was expended to achieve the milestone, the economic
basis for the milestone payment and licensing arrangement and
the costs and staffing to achieve the milestone. It is expected
that the substantive milestone method will be appropriate for
most contracts. If we determine the substantive milestone method
is not appropriate, we apply the proportional performance method
to the relevant contract. This method recognizes as revenue the
percentage of cumulative non-refundable cash payments earned
under the contract, based on the percentage of costs incurred to
date compared to the total costs expected under the contract.
This excerpt taken from the ELN 20-F filed Feb 28, 2007. Revenue
Recognition
We recognize revenue from the sale of our products, royalties
earned and contract arrangements in accordance with the
SEC’s Staff Accounting Bulletin No. 104,
“Revenue Recognition,” (SAB 104), which requires
the deferral and amortization of up-front fees when there is a
significant continuing involvement (such as an ongoing product
manufacturing contract) by the seller after an asset disposal.
We defer and amortize up-front license fees to the income
statement over the “performance period”. The
performance period is the period over which we expect to provide
services to the licensee as determined by the contract
provisions. Generally, milestone payments are recognized when
earned and non-refundable, and when we have no future legal
obligation pursuant to the payment. However, the actual
accounting for milestones depends on the facts and circumstances
of each contract. We apply the substantive milestone method in
accounting for milestone payments. This method requires that
substantive effort must have been applied to achieve the
milestone prior to revenue recognition. If substantive effort
has been applied, the milestone is recognized as revenue,
subject to it being earned, non-refundable and not subject to
future legal obligation. This requires an examination of the
facts and circumstances of each contract. Substantive effort may
be demonstrated by various factors, including the risks
associated with achieving the milestone, the period of time over
which effort was expended to achieve the milestone, the economic
basis for the milestone payment and licensing arrangement and
the costs and staffing to achieve the milestone. It is expected
that the substantive milestone method will be appropriate for
most contracts. If we determine the substantive milestone method
is not appropriate, we apply the proportional performance method
to the relevant contract. This method recognizes as revenue the
percentage of cumulative non-refundable cash payments earned
under the contract, based on the percentage of costs incurred to
date compared to the total costs expected under the contract.
This excerpt taken from the ELN 6-K filed Mar 31, 2006. c Revenue
recognition
There are different rules under IFRS and U.S. GAAP in
relation to the recognition of revenue arising under contracts
which include multiple arrangements such as the sale of a
product and related R&D or manufacturing arrangements.
Although the revenue recognised will be the same under both IFRS
and U.S. GAAP over the life of the contract, the different
requirements can result in differences in the timing of revenue
recognition.
This excerpt taken from the ELN 20-F filed Mar 30, 2006. Revenue
Recognition
We recognize revenue from the sale of our products, royalties
earned and contract arrangements in accordance with Staff
Accounting Bulletin No. 104, “Revenue
Recognition,” (SAB 104), which requires the deferral
and amortization of up-front fees when there is a significant
continuing involvement (such as an ongoing product manufacturing
contract) by the seller after an asset disposal. We implemented
SAB 104 in the fourth quarter of 2000 and recorded a
non-cash charge of $344.0 million for the cumulative effect
of this accounting change relating to revenue recognized in
periods up to December 31, 1999. Included in contract
revenue is $5.7 million for both 2005 and 2004 and
$10.1 million for 2003 relating to the SAB 104
cumulative adjustment. We defer and amortize up-front license
fees to the income statement over the “performance
period”. The performance period is the period over which we
expect to provide services to the licensee as determined by the
contract provisions. Generally, milestone payments are
recognized when earned and non-refundable, and when we have no
future legal obligation pursuant to the payment. However, the
actual accounting for milestones depends on the facts and
circumstances of each contract. We apply the substantive
milestone method in accounting for milestone payments. This
method requires that substantive effort must have been applied
to achieve the milestone prior to revenue recognition. If
substantive effort has been applied, the milestone is recognized
as revenue, subject to it being earned, non-refundable and not
subject to future legal obligation. This requires an examination
of the facts and circumstances of each contract. Substantive
effort may be demonstrated by various factors, including the
risks associated with achieving the milestone, the period of
time over which effort was expended to achieve the milestone,
the economic basis for the milestone payment and licensing
arrangement and the costs and staffing to achieve the milestone.
It is expected that the substantive milestone method will be
appropriate for most contracts. If we determine the substantive
milestone method is not appropriate, we will apply the
percentage-of-completion
method to the relevant contract. This method recognizes as
revenue the percentage of cumulative non-refundable cash
payments earned under the contract, based on the percentage of
costs incurred to date compared to the total costs expected
under the contract.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. Revenue recognition There are different rules under Irish GAAP and U.S. GAAP in relation to the recognition of revenue arising under contracts which include multiple arrangements such as the sale of a product and related R&D or manufacturing arrangements. Although the revenue recognised will be the same under both Irish GAAP and U.S GAAP over the life of the contract, the different requirements can result in differences in the timing of recognition of revenue. Discontinued operations Under Irish GAAP, a discontinued operation is classified as an operation of the business which is (i) sold or terminated and the sale or termination has been completed during the year or within three months following year end, (ii) the former activities have ceased permanently, (iii) the operation had a material effect on the nature and focus of the business and (iv) its financial results are clearly distinguishable. Under U.S. GAAP, a discontinued operation is a component of an entity whose operations and cashflows have been or will be eliminated from the ongoing operations of the entity and the entity will not have any significant continuing involvement in the operations of the component after its disposal. As the criteria for the determination of discontinued are different under Irish GAAP and U.S. GAAP, the products and businesses treated as discontinued differ under each. All of the operations that have been treated as discontinued operations under U.S. GAAP have also been treated as discontinued operations under Irish GAAP. However, the primary care franchise, the European sales and marketing business, Zonegran, Zanaflex, Naprelan and certain drug delivery operations have been treated as discontinued operations under Irish GAAP, but as continuing operations under U.S. GAAP, because we believe that we have significant continuing involvement in the operation of these businesses, for example through ongoing supply arrangements or formulation activities. The presentation of discontinued operations differs between Irish and U.S. GAAP. Under Irish GAAP, the results of discontinued operations remain within the profit and loss captions to which they relate, but additional disclosures are given both on the face of the profit and loss account and within a note to the Consolidated Financial Statements. Under U.S. GAAP, the results of discontinued operations are shown as a separate component of income before extraordinary items and the cumulative effect of accounting changes (if applicable). There are no reconciling differences to net (loss)/income or shareholders’ equity between Irish GAAP and U.S. GAAP related to discontinued operations. | EXCERPTS ON THIS PAGE:
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