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Life Sciences

Life Sciences Industry Accounting Guide (March 2026)

Life Sciences Industry Accounting Guide (March 2026)

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March 2026
Finance and accounting professionals in the life sciences industry face complex issues and must exercise significant judgment in applying existing rules to matters such as research and development (R&D) costs, acquisitions and divestitures, consolidation, contingencies, revenue recognition, income taxes, financial instruments, and financial statement presentation and disclosure. The 2026 edition of Deloitte’s Life Sciences Industry Accounting Guide (the “Guide”) addresses these and other relevant topics affecting the industry this year. It includes interpretive guidance; illustrative examples; recent standard-setting, legislative, and rulemaking developments (through March 6, 2026); and key differences between U.S. GAAP and IFRS® Accounting Standards.
Discussions that have been added or expanded since the publication of last year’s edition include those related to:
  • New FASB Accounting Standards Updates (ASUs), specifically:
    • ASU 2023-07 on segment reporting.
    • ASU 2024-03 on disaggregation of income statement expenses (the “DISE standard”).
    • ASU 2024-04 on induced conversions of convertible debt instruments.
    • ASU 2025-03 on identifying the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity.
    • ASU 2025-06 on the accounting for and disclosure of software costs under ASC 350-40.
    • ASU 2025-07 on derivatives scope refinements and share-based payments from a customer.
    • ASU 2025-09 on hedge accounting improvements.
    • ASU 2025-10 on the accounting for government grants received by business entities.
  • Reverse mergers.
  • Tariffs.
  • Most-favored-nation drug pricing.
  • Drug pricing impacts of the Inflation Reduction Act of 2022 (IRA).
  • Supplier finance programs.
  • Tax provisions added or amended by the Tax Cuts and Jobs Act of 2017, the CARES Act, the IRA, and the One Big Beautiful Bill Act.
  • The BIOSECURE Act.
  • Updates on (1) regulatory developments related to the E.U. Corporate Sustainability Reporting Directive and the California climate legislation; (2) standard-setting developments related to the European Sustainability Reporting Standards, the International Sustainability Standards Board standards, and the Greenhouse Gas Protocol standards; and (3) the status of the SEC’s final rule on climate-related disclosures.