IFRS - impact on financial reporting for the life sciences sector

January 2007

The transition to International Financial Reporting Standards ("IFRS") continues to be a significant issue for the life sciences sector to address. With a significant number of life science companies being quoted on the Alternative Investment Market ("AIM") the development of IFRS practice is emerging more slowly in this sector than for many others.

This publication provides an analysis of the annual reports of those companies in the techMARK mediscience index that have reported their first IFRS results. From this we have assessed the income statement effect for the first full year of adoption and summarised the principal adjustments which have arisen providing some guidance on each of these and the practical hurdles which need to be overcome.

We also briefly consider the non-financial impacts that have arisen as well as the take up by companies of any exemptions that were available to them under IFRS 1 'First time adoption of International Accounting Standards'. The story is far from over but there are a number of valuable observations which can be drawn at this stage.

If you would like to order a hard copy of this report, please contact Tamzin Close on +44 (0) 1223 552319.