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Posted On: 03/21/2019 10:59:16 PM
Post# of 154687
Re: BlackDoggie #1214
I think after reading BD more concise explanation I can summarize my previous post a little more simplistic.
The basis for capitalization is the lower of fair market value and cost. Since leronlimab inventory has no fair market value until BLA filing, when it would qualify for pre-launch inventory, then it cannot be capitalized (can’t capitalize something with a fair market value of zero). Prior to this point it is determined that it is not reasonably determined to have a fair market value or is unsalable as BD mentioned.
Similarly, the write down discussion do not apply until it is capitalized as it has no asset value until this point and thus there is nothing to write down.
The basis for capitalization is the lower of fair market value and cost. Since leronlimab inventory has no fair market value until BLA filing, when it would qualify for pre-launch inventory, then it cannot be capitalized (can’t capitalize something with a fair market value of zero). Prior to this point it is determined that it is not reasonably determined to have a fair market value or is unsalable as BD mentioned.
Similarly, the write down discussion do not apply until it is capitalized as it has no asset value until this point and thus there is nothing to write down.
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