Biovail

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    Biovail

    Biovail Case Part 1: Assumptions: 1. The mark-up is from the Distributor to the Wholesaler, and the margin is from the Wholesaler to the Retailer Biovail Distributor purchase price Wholesaler purchase price = Distributor purchase price + 400% mark-up Retailer price = Wholesaler price + 35% margin 2. We don’t know the excess space needed in the truck for the 64 gallon drums so we assumed that the 1.00 cm3 accounts for the excess space

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    Blackberry Record 1

    its perch as Canada's most valuable tech company. It now sits below Montreal's Valeant Pharmaceuticals, makers of COLD-FX, according to a ranking by Cantech Letter, a publication that tracks public Canadian tech companies. Thanks to a merger with Biovail in 2010, Valeant is worth $16 billion to RIM's $6 billion. (Last spring, RIM was worth $30 billion.) Canadian politicians, who frequently touted the company as the shining star of Canadian innovation, have also dampened their enthusiasm. Federal Finance

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    Risk Management

    at Accounting Biovail INTRODUCTION Operating within a complex and highly competitive pharmaceutical industry, the challenges confronting Biovail are intensifying as regulatory agencies release formal allegations of misconduct against four corporate executives and as outstanding lawsuits, widespread scrutiny, and a history of questionable accounting practices are unavoidably coming to a head. Responsible for overcoming its damaged reputation and for moving the company forward, it is imperative that

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    Case for Biovail

    as Distributor's employee made sure to change the title and finish the transaction as the product would reach the destination. In this case Biovail should recognize the revenue the moment that the product have left the first destination and the company in order to go to Distributor's destination. That way the responsibility would be not only concern Biovail but also Distributor. 3.it does not influence them in third quarter at least, in any of the case whether they take revenue at the moment the

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    Biolvail

    4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted to make

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    Case Study

    Table of Contents INTRODUCTION 1 ISSUES 1 QUANTITATIVE ANALYSIS 2 QUALITATIVE ANALYSIS 3 (i). Revenue Recognition Analysis 3 (ii). Strength and Weaknesses of Biovail 3 RECOMMENDATIONS 4 CONCLUSION 5 INTRODUCTION Biovail corporation was one of Canada’s largest publicly traded pharmaceutical companies. Biovail is a specialty pharmaceutical company engaged in the formulation, clinical testing, registration, manufacture and commercialization of pharmaceutical products, utilizing advanced

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    Sub Issue and Recommendation for Biovail Case

    Sub issue: Other than having fraud conducting of revenue recognition, Biovail Corporation also has overestimated the amount of Wellbutrin XL on the truck. The company estimated that revenue associated with this shipment was in the range of $10 million and $20 million and confirmed that the manufacturing cost value of this shipment had been fully insured. The trooper estimated that the truck was about one-quarter full. After the investigation done, the analyst stated if there had been $20 million

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    Biovail Case

    CONTENTS INTRODUCTION 2 ISSUES 3 QUESTION and ANSWER 4 RECOMMENDATION 8 CONCLUSION 10 BIBLIOGRAPHY 11 INTRODUCTION Biovail Corporation was one of the Canada’s largest pharmaceutical publicly traded companies which expert in the development and large scale of manufacturing of pharmaceutical products. Biovail Company engaged activities on enhance formulate of the existing drugs, clinical testing, manufacture and commercial pharmaceutical products and utilized advanced drug delivery

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    Biovail Corporation: Revenue Recognition and Fob Sales Accounting

    case the revenue should be recognized after the product had left manufacturing facility. Because according to the FOB shipping point conditions the buyer pays the freight and takes ownership title to the goods at the shipping point. Thereby, seller (Biovail Corp.) had not retained any significant risks of ownership or future obligations concerning shipped product. As it turned out later, the Distributor had previously called and emailed Biovail’s vice president of Finance to change FOB shipping point

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    Syllabus

    | | | | |INTRODUCTION CASE: Biovail Corporation: Revenue Recognition and FOB Sales Accounting |HBS |2&3 | | | | | | | |Biovail announces that it will miss its quarterly earnings target of the shortfall on a | | | |

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    Biovail

    UNITED STATES DISTRICT COURT -SOUTHERNDISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 08 Civ. ECF CASE BIOVAIL CORPORATION, EUGENE N. MELNYK, BRIAN CROMBIE, JOHN MISZUK, and KENNETH G. HOWLING, Defendants. COMPLAINT Plaintiff Securities and Exchange Commission, for its Complaint against Defendants Biovail Corporation ("Biovail" or the "Company"), Eugene N. Melnyk, Brian Crombie, John Miszuk and Kenneth G. Howling (collectively, "Defendants"), alleges as

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    Biovail Corporation

    Table of Contents 1.0 Abstract 2 2.0 Introduction 2 3.0 Questions and answer 4 4.0 Recommendations 14 5.0 References 15 1.0 Abstract Biovail Corporation, a large pharmaceutical company and had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. It is recently had its stock downgraded by a well-known pharmaceutical analyst and a number of other analysts were also scrutinizing the company. The outcome was not favorable, as Biovail's

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    Biovail

    Biovail Corporation Issues : 1) The company has the problem with their recognition of the profit * Whether they should realize or not the revenue for the third quarter. 2) Issues on the concepts of revenue recognition that have been apply in the company to show their financial results. * Whether Biovail Corporation recognize its revenue using FOB shipping point or FOB destination. Suggested Solution 1) FOB Destination shipping term * The truck accident had no impact on

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    Biovail

    UNIVERSITI UTARA MALAYSIA COLLEGE OF BUSINESS FIRST SEMESTER SESSION 2013/2014 BKAL3063 INTEGRATED CASE STUDY GROUP F (2) CASE 3: BIOVAIL CORPORATION - REVENUE RECOGNITION AND FOB SALES ACCOUNTING PREPARED FOR: AMIN BIN ALI PREPARED BY: GAN PEI WEN 205401 SARA LEE HWEI MEI 206998 THEH JIA HUI 207133 JUMAIAH BINTI YASIN 207827 AISHA ANUAR 207919 DATE OF SUBMISSION: 21st OCTOBER 2013 TABLE OF CONTENTS INTRODUCTION 1 ISSUES 1 QUANTITATIVE ANALYSIS 2 QUESTION

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    Biovail

    Biovail Corporation Issues : 1) The company has the problem with their recognition of the profit * Whether they should realize or not the revenue for the third quarter. 2) Issues on the concepts of revenue recognition that have been apply in the company to show their financial results. * Whether Biovail Corporation recognize its revenue using FOB shipping point or FOB destination. Suggested Solution 1) FOB Destination shipping term * The truck accident had no impact on

    Words: 302 - Pages: 2

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    Accounting Word Document

    FOB shipping point – Biovail’s contract with the distributor had title change in Manitoba when it left the shipping dock. (Byer takes responsibility for the goods when the goods leave the seller’s premises) FOB destination – The agreement between Biovail and the Distributor provided that title too, and the risk of loss with respect to the product would not have passed to the Distributor until the product was delivered to the Distributor’s facility. (Sellers remain responsible for the goods until the

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    Biovail Corporation Case

    Biovail Corporation Case Study 1. The truck’s trailer dimensions are: 17m x 4.5m x 2.5m. To convert the trailer dimensions to centimeters to compare the volume of the boxes to the volume of the trailer: 1 meter = 100 centimeters 17m= 1,700 centimeters 4.5m = 450 centimeters 2.5m = 250 centimeters So the dimensions of the truck in centimeters are: 1,700 x 450 x 250, the volume of which is 191,250,000 cm3 1.5x = 191,250,000 x =127,500,000 In order to carry

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    Canadian Companies

    Ltd. * BC Hydro * BC Research Inc * Becancour Silicon (silicon manufacture) * Bell Canada * Bennett Environmental * Becker's * Ben Moss Jewellers * Big Blue Bubble (software firm) * BigPark (software firm) * Biovail * BioWare (video games) * Bison Transport Inc. (Transportation) * Black Diamond Cheese Limited * Black Hen Music (record label) * Black Photo Corporation * BlackBerry (wireless devices) * Blake, Cassels & Graydon (law

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    Biovail

    Biovail Business Memo Based on the assumptions provided in the case literature, each tractor trailer contains volume of 191.25 mᶾ, or 191,250,000 cmᶾ. Assuming that each tablet takes up 1.5 cmᶾ of space and has a wholesale price of $2.83 per tablet, each trailer can carry up to $360,825,000 worth of Wellbutrin XL product. $10,000,000 worth of product would take up 0.03 trailers, or 3% of a trailer’s total volume. The company’s stated accounting treatment of their product shipments is FOB shipping

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    Biovail Case

    that the manufacturing cost of the shipment had been fully insured the economic loss (if any) to Biovail would be significantly mitigated adding to my concerns about the inflated negative guidance. This smacks of a convenient excuse for explaining missing revenue guidance. Issues Regarding Revenue Recognition at Biovail Under US GAAP this revenue should not have been recognized by Biovail because delivery did not occur. While management represented that the arrangement is FOB shipping

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    Biovail

    1. a) What is the manufacturer revenue per pill? (Please see attached calculation file) Biovail  Distributor  Wholesaler  Retailer Retailer Wholesaler Distributor Cost = $2.83 Margin = (Price – Cost)/Price Margin = 0.35, Price = $2.83 Cost = Price(1 – Margin) Cost = $1.84 Markup = (Price – Cost)/Cost Markup = 4, Prices = $.184 Cost = Price/(1 + Markup) Cost = (1.84)/5 = $0.37 Biovail = $0.3679 revenue per pill = $0.37 revenue per pill (rounded) • How many pills equate to

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    Chapman International Inc.

    Management, Case Numbers 5-211-251(A) and 5-211-251(B), Published 2011 Case and Teaching Note: Jimmy Fu and Moog Inc.: Understanding Shareholders’ Equity, Harvard Business Publishing, Case Number 4203, Published June 2010 Case and Teaching Note: Biovail Corporation: Revenue Recognition and FOB Sales Accounting, Harvard Business Publishing, Case Number 4011, Published April 2009 Teaching Note for Merrimack Tractors and Mowers, Inc.: LIFO or FIFO. Harvard Business Publishing, Case Number 3219, Published

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    Biovail

    Biovail Case Assignment Questions: 1. How many truckloads of product are actually required to carry $10 million of product? Show your calculations. Given: a. 1 Wellbutrin XL tablet is estimated to be 1.5 cm3 (this includes the packing space) b. 1 18-wheeler trailer’s dimensions are: 17m x 4.5m x 2.5m Since the tablet and the trailer are using different units of measurements we need to convert the trailer dimensions to centimeters before we can calculate the volumes. a. To convert

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    Bioval Case

    4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted

    Words: 3888 - Pages: 16

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    Econometrics

    Inc. Wyeth Name of Company Abbott Laboratories Actavis Akzo Nobel* Alcon Inc Allergan Inc Alpharma Inc.* Amgen Inc. Apotex Astellas Pharma Inc. AstraZeneca Barr Pharmaceuticals Inc.* Baxter International Inc. Bayer AG Biogen Idec Biovail Corporation Boehringer-Ingelheim Bristol-Myers Squibb Chugai Pharmaceutical Co CSL Daiichi Sankyo Co. Dainippon Sumitomo Eisai Co. Ltd. Eli Lilly and Co. Endo Pharmaceuticals Forest Laboratories, Inc. Gedeon Richter Genentech Inc. Genzyme

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    Case Review Biovail Corporation

    Case Review: Rohm and Haas 11/4/2010 Background 2  1983: $2B worldwide sale from 4 segments  Kathon microbiocide products: $25M Polymers, resins, and monomers Industrial chemicals Plastics Fluid Process chemicals Specialty chemicals Kathon 886 MW Thayer School of Engineering Agricultural chemicals Petroleum chemicals Kathon MWX 11/4/2010 Background 3  Metalworking fluid: 60 million gallons in the US  Biocides kill microorganisms in metalworking fluids Product name Treatment

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    Biovail

    should the company recognize revenue based upon the two possible FOB structures mentioned in the contract? Option 1: FOB shipping point: Recognise revenue when shipment leaves Manitoba, provided that Biovail does not retain any significant risks of ownership or future obligations. Biovail recognized revenue when the product was shipped to the customer provided that it has not retained any risk of ownership or future obligations when the product has been shipped to the customer. The revenue

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    Harvard Case

    4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted

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    Biovail Corporation

    LAWS7012 | Case Studies Topic 5 Case Study 1 Are the following self-education expenses deductible under section 8-1? Provide reasons for your answer. a. Barry, a trainee accountant, is studying commerce part-time at university. Barry enrolled after he started his employment with his firm. b. Brianna, a company director, was having difficulty coping with work due to stress brought about by difficulties with her family situation. She decided to attend a four-week course in stress management

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    Ba Course

    Financial Accounting MFAB, July 2016 Assignment for Biovail Corporation Due before 8.30 am, Sunday, July 31, 2016 Please answer the following questions: 1. What is the manufacturer revenue per pill?1 How many pills equate to $10m in revenue? What is the volume of $10m worth of pills? How many truckloads are required to carry $10 million worth of pills? Show your calculations. (5 points) 2. How should the company recognize revenue based on each of the two possible FOB contract structures

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    Business Administration

    Bidding for the Future Activities  Discussions Evaluation  9 Assignment 4: A Horror Show at the Cinemaplex Preparation  Reading(s) o Chapter 10: Corporate Governance o Chapter 11: Organizational Structure and Controls o Case Study 4: Accounting at Biovail o Case Study 8: From Low Cost to Global Leadership: Computime (Hong Kong) Leads through Innovation Activities 20 280  20 280 20 20 ©2012 Strayer University. All Rights Reserved. This document contains Strayer University Confidential and

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    Biovail

    competitive pharmaceutical industry, the challenges confronting Biovail are intensifying as regulatory agencies release formal allegations of misconduct against four corporate executives and as outstanding lawsuits, widespread scrutiny, and a history of questionable accounting practices are unavoidably coming to a head. Responsible for overcoming its damaged reputation and for moving the company forward, it is imperative that management at Biovail resolve three immediate issues. 1. Establishing a

    Words: 3506 - Pages: 15