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CSU Global Accounting Information and The Characteristics of Qualitative Accounting Information

You are a new accountant at a publicly-traded biopharmaceutical company. Your company wants to develop a new therapeutic drug and needs financing. The company s executives want the accounting department to put together a report to present to potential investors. The executives want you to include scientific findings from the first phase of the clinical trials of the drug. Although the company has had a 20% success rate in the past, the executives want the findings from the clinical trials reported so potential investors can see that this product will be successful. Another argument is that, although there are no sales yet, the clinical trials prove that once the company receives the funds to get through the clinical testing, it will obtain government approval to make as well as sell the drug, which will make the investor happy.Explain the accounting information and the characteristics of qualitative accounting information.What are the generally accepted accounting principles (GAAP) that the company may violate by reporting the scientific findings to investors?Respond to two or more of your classmates postings in any of the following ways:Build on something your classmate saidExplain why and how you see things differentlyAsk a probing or clarifying questionShare an insight from having read your classmate s postingOffer and support an opinionExpand on your classmate s posting.Refer to the discussion grading rubric for more information on expectations of class discussions

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