Digg It - Finance

Legal ownership is not the only criterion for classifying something in accounting terms as an asset; for instance, someone buys an item on hire purchase but does

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

not become the owner of that item until the full purchase price has been paid. Nevertheless, the item is still recorded as an asset together with the correspondi

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

g obligation. Similarly, although a lessee never becomes the owner of the item leased, he may record that item as an asset providing that the corresponding oblig

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

tion is also shown.

In an accounting sense 'ownership' usually implies 'legal ownership', but there are exceptions; an interest in a tangible or intangible objec

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

, or a right to value, combined with the right of possession and the right of use also constitutes an asset for the interested party.

If a person is the owner of

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

the value or economic benefit arising from a specific source, then that source is an asset for the person concerned and he is the economic owner, although he may

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ot be the legal owner. In such case accounting substance should take precedence over legal form in ascertaining the most suitable accounting procedure.

The chie

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

function of accounting is to determine profits. The generation of income, however, requires capital investment in order to provide the facilities needed by an e

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

terprise to operate continuously and indefinitely.

Historically, expenses that are incurred by not allocated as a cost during a period are deferred costs. From

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

n accounting point of view, they represent an asset. If these costs can be recovered within a year, they are current assets and if they are recoverable over a lo

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ger period they are fixed assets.

This classification of assets is essential for determining profits and also to show the enterprise's position at a specific tim

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

, in other words, the composition of its assets and the nature of its obligations. The purpose of acquiring fixed assets is to use them to generate income. They

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

are not acquired for the purpose of resale. The fixed assets must produce goods that generate income, or in other words, they must be used in the business' opera

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ions.

The largest category of fixed assets in accounting terms is tangible, such as buildings, machinery and vehicles. Land that is not subject to depreciation

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

r depletion through use, since it is never 'consumed' is also considered as a tangible fixed asset. When evaluating buildings, machinery and vehicles these asset

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

are subject to depreciation that must be apportioned annually as a cost. Natural resources that, through use, are also subject to depletion, such as mines, oil

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

nd gas wells and plantations are also considered as tangible fixed assets.

Another group of assets is intangible fixed assets such as patents, copyrights, tradem

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

rks' and goodwill. Deferred expenses and debits such as the preliminary expenses of a company are also considered in accounting terms as intangible fixed assets.

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

Finally, the last to be considered as an asset are external assets also known as investments. These include fixed period investments earning a fixed income, inv

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

stments in ordinary shares of other companies, sundry investments such as pension funds, housing schemes and insurance policies and, lastly, investment properties

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggit.org.ua/article/89779/diggit-The-Nature-Of-Assets.html">The Nature Of Assets</a>

BB link (for phorums):
[url=http://www.diggit.org.ua/article/89779/diggit-The-Nature-Of-Assets.html]The Nature Of Assets[/url]

An informational interview is simply a means of gathering information you need in order for you to choose which career path is right for you. It is not the same as a job interview because the job hunter is the one who conducts the informational interview.

Lets get something straight, your cover letter is actually more important than your resume! The fact is the cover letter is the first impression an employer gets, and first impressions count. Find out how to create a cover letter that directly asks for the opportunity to be interviewed in a way that practically forces companies to call!

There are several advanced ways to Affiliate Marketing. Following are some of them...

Tags

Links

Digg It - The Nature Of Assets

Related Articles: