Pharmaceutical and Life Sciences

Accounting Alerts
 

Financial reporting implications of Hurricane Maria 

This Industry Alert discusses key accounting, disclosure, and internal control related matters that pharmaceutical and medical technology companies may encounter in dealing with the financial reporting implications of Hurricane Maria. In order to minimize supply disruption, companies have implemented contingency plans to move inventory out of Puerto Rico, shift production to other FDA compliant manufacturing sites, and/or realign inventory within their distribution network. 

For additional information on the financial reporting implications of natural disasters, refer to PwC's In depth: Accounting and disclosure implications of Hurricanes Harvey and Irma. 

In connection with a company’s upcoming interim and annual reports, disclosures may be necessary regarding the effects of Hurricane Maria. Footnote disclosures may be necessary for losses incurred, insurance claims made and expected insurance recoveries.

Accounting considerations as a result of Hurricane Maria include, but are not limited to: 

  • Asset impairments,
  • Idle capacity and vacant facilities,
  • Lease terminations,
  • Classification of insurance proceeds,
  • Repatriating foreign earnings,
  • Valuation allowance assessment,
  • Environmental exposures,
  • Subsequent events,
  • Financial statement reporting and disclosures, and
  • Internal control implications.

Contact us

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

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