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This excerpt taken from the ELN 20-F filed Feb 26, 2009. (n) Sales
discounts and allowances
We recognize revenue on a gross revenue basis (except for
Tysabri revenue outside of the United States) and make
various deductions to arrive at net revenue as reported in our
Consolidated Statements of Operations. These adjustments are
referred to as sales discounts and allowances and are described
in detail below. Sales discounts and allowances include
charge-backs, managed healthcare and Medicaid rebates, cash
discounts, sales returns and other adjustments. Estimating these
sales discounts and allowances is complex and involves
significant estimates and judgments, and we use information from
both internal and external sources to generate reasonable and
reliable estimates. We believe that we have used reasonable
judgments in assessing our estimates, and this is borne out by
our historical experience.
We do not conduct our sales using the consignment model. All of
our product sales transactions are based on normal and customary
terms whereby title to the product and substantially all of the
risks and rewards transfer to the customer upon either shipment
or delivery. Furthermore, we do not have an incentive program
that would compensate a wholesaler for the costs of holding
inventory above normal inventory levels thereby encouraging
wholesalers to hold excess inventory.
We account for sales discounts, allowances and returns in
accordance with the FASB’s Emerging Issues Task Force
(EITF) Issue
No. 01-09,
“Accounting for Consideration Given by a Vendor to a
Customer (Including a Reseller of the Vendor’s
Products),” and SFAS No. 48, “Revenue
Recognition When Right of Return Exists,”
(SFAS 48) as applicable.
This excerpt taken from the ELN 20-F filed Feb 28, 2008. (m) Sales
discounts and allowances
We recognize revenue on a gross revenue basis (except for
Tysabri revenue outside of the United States) and make
various deductions to arrive at net revenue as reported in our
Consolidated Statements of Operations. These adjustments are
referred to as sales discounts and allowances and are described
in detail below. Sales discounts and allowances include
charge-backs, managed healthcare and Medicaid rebates, cash
discounts, sales returns and other adjustments. Estimating these
sales discounts and allowances is complex and involves
significant estimates and judgments, and we use information from
both internal and external sources to generate reasonable and
reliable estimates. We believe that we have used reasonable
judgments in assessing our estimates, and this is borne out by
our historical experience.
We do not conduct our sales using the consignment model. All of
our product sales transactions are based on normal and customary
terms whereby title to the product and substantially all of the
risks and rewards transfer to the customer upon either shipment
or delivery. Furthermore, we do not have an incentive program
that would compensate a wholesaler for the costs of holding
inventory above normal inventory levels thereby encouraging
wholesalers to hold excess inventory.
Table of Contents
Elan
Corporation, plc
NOTES TO
THE CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
We account for sales discounts, allowances and returns in
accordance with the FASB’s Emerging Issues Task Force
(EITF) Issue
No. 01-09,
“Accounting for Consideration Given by a Vendor to a
Customer (Including a Reseller of the Vendor’s
Products),” and SFAS No. 48, “Revenue
Recognition When Right of Return Exists,”
(SFAS 48) as applicable.
This excerpt taken from the ELN 20-F filed Mar 30, 2006. (m) Sales
discounts and allowances
We recognize revenue on a gross revenue basis and make various
deductions to arrive at net revenue as reported in the
Consolidated Statements of Operations. These adjustments are
referred to as sales discounts and allowances and are described
in detail below. Sales discounts and allowances include
charge-backs, managed health care and Medicaid rebates, cash
discounts, sales returns and other adjustments. Estimating these
sales discounts and allowances is complex and involves
significant estimates and judgments, and we use information from
both internal and external sources to generate reasonable and
reliable estimates. We believe that we have used reasonable
judgments in assessing our estimates, and this is borne out by
our historical experience.
Table of Contents
Elan
Corporation, plc
NOTES TO
THE CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
We do not conduct our sales using the consignment model. All of
our product sales transactions are based on normal and customary
terms whereby title to the product and substantially all of the
risks and rewards transfer to the customer upon either shipment
or delivery. Furthermore, we do not have an incentive program
which would compensate a wholesaler for the costs of holding
inventory above normal inventory levels thereby encouraging
wholesalers to hold excess inventory.
We account for sales discounts and allowances in accordance with
EITF Issue No.
01-9,
“Accounting for Consideration Given by a Vendor to a
Customer (Including a Reseller of the Vendor’s
Products),” and SFAS No. 48, “Revenue
Recognition When Right of Return Exists,”
(SFAS 48) as applicable.
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