Pharmaceutical and Life Sciences

Accounting Alerts

Accounting for terminated clinical trials

This Alert provides guidance for companies who may need to consider the accounting and disclosure implications of (a) wind down clinical trial costs and (b) project-specific assets that have no alternative use when deciding to terminate a clinical trial before that trial is completed.

Prior to the decision to terminate the clinical trial, companies will need to evaluate the recoverability of any non-refundable advance payments made in exchange for future R&D services.

External expenses incurred after a decision to terminate a clinical trial typically include:

  • ongoing contract research organization (CRO) fees,
  • investigator fees,
  • and laboratory fees.

Contact us

Laura Robinette
US Pharmaceutical and life sciences Assurance Leader
Tel: +1 (919) 791 4100

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