We highlight diversity that exists in practice for the capitalisation of the R&D costs and provide a perspective on the intent of standard setters in this area. We also highlight the history and evolution of price control in India for pharmaceuticals and provide some perspective into the accounting and reporting challenges arising out of the Supreme Court decision on how price control guidelines should operate. We also examine some of the reporting challenges and considerations associated with product recalls. We conclude our pharmaceutical sector series of articles by highlighting an area of current controversy from a tax and compliance perspective relating to provision of freebies to medical practitioners.
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