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Financial Auditing and accounting of Pharmaceutical Firms (Based on my exposure at WHARTON- UNIVERSITY OF PENNYSYLVANIA  with  Prof. Dr. Brian J Bushee on a series of online classes and discussions and my exposure to financial plans at a Pharmaceutical Company.

So many thanks to my beloved Friend CA. Govinda Gautam (Indian Board), My younger brother, RANJAN SUBEDI (now a final year CA student), Dr. Bushee, Phr. Roshan Poudyal (Technical Director, QA Manager at QMED Formulations Pvt. Ltd.) and Mr. Himin Dahal (Store incharge) for providing me with various idea when I was Hungry. I never learned Accounting and Auditing in my college and University degrees that always made me feel that I seriously lagged in financial accounting and Auditing. I was keen in learning about accounting when first I first got a COMPANY BONUS, which was far too sure much lesser than I expected and the auditor used various terms which I was not at all familier with. To study accounting just for finding a Auditor's fault is not a worth rewarding. I was much interested in how companies mark their profits and turnover in pharmaceutical industries. By the time I am writing this article, some companies of Nepal are creating a  Rs. 70,00,00,000 turnovers and some are in Rs. 2,00,00,000. What size of transactions is involved in Big and Small companies? What are the ways for a secure Financial Accounting? Well, this article will definitely help you to learn more!!!

I will make an arbitrary example of BIDUR Pharmaceuticals. (Well, this is not a company in tangible assets but I thought Bi-Dur Will honestly represent names of My dad Bimal and Durga ......... :--)  Fun Facts !!!

For Pharmacy students and Graduates like us, to learn a foreign language like Accounting, we need quite a bit of practice in the basic foundations (grammar, syntax, idioms, etc.).  This material is not fun, but it is absolutely essentially for being able to read and to understand books written in the language (in our case, financial statements.).  I will start building these foundations so that It might make it worth sense auditing for firms in Pharmaceutical companies.  I will start with an overview of financial reporting.  What types of reports are required?  Who makes the rules? Who enforces the rules?  Then, I will cover the balance sheet equation and define/discuss Assets, Liabilities, and Stockholders' Equity.  I will introduce debit-credit bookkeeping and do lots of practice in translating transactions into debits and credits. Finally, I will introduce a case of a start-up company to provide you insights into all of the steps necessary to go from recording the first transactions of a new business all the way through its first set of financial statements.

I  will then start with a discussion of Accrual Accounting and how it affects the recognition of the Income Statement accounts: Revenues and Expenses.  I will cover adjusting entries, which are needed to prepare our internal books for the upcoming financial statements.  Finally, I will discuss closing entries and the preparation of the Balance Sheet and Income Statement.  At each stage, I will continue to work on the case of our start-up company

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