Asset Recognition: Pfizer

Asset Recognition: Pfizer
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Asset recognition: Pfizer
Pfizer Inc. is a globally recognized biopharmaceutical company whose activities and services are research-based. The company was incorporated in June 1942 under the laws of the State of Delaware. The company deals in manufacturing health care products and uses its various resources to extend therapies to people globally to improve their lives (Pfizer, 2018). some of the products manufactured by the company include some of the best-known consumer medical products, medicines, and vaccines. The company offers its products to several emerging and already existing markets. The company’s main aim is to ensure its consumers’ well-being by offering prevention, treatment, and cure to hardcore diseases (Pfizer, 2018). The company’s overall products are designed to meet both the needs of the patients and the health care providers. The company’s assets are differently recognized, and it has several vital intangible assets that it uses to create value.
Intangible assets are not in physical form; they can be patents, copyrights, brand recognition, or goodwill. According to the University of Melbourne (n.d), intangible assets are only recognized when it is probable that the expected future benefits attributable to the assets will flow to the entity. Also, an intangible asset of a company is recognized only if its cost can be measured (Melbourne, n.d). Even though an asset meets the above requirements, internally generated intangible assets are excluded from recognition under the ASSB 138/ IAS38. They can only be exceptionally recognized using their fair values if they make part of the business combination. Therefore, for Pfizer inc. The recognizable intangible assets that create value include goodwill which is the acquisition of a business by a company. Pfizer’s goodwill was valued at $49577 million as of December 2020. Other intangible assets include brands that are valued at $922 million (Pfizer, n.d). These brands include the oncology brand, which is considered of material interest to the company, and the vaccines innovative brands that cover all ages, including infants, adults, and adolescents (Pfizer, 2018). The other intangible asset that creates value is the patent rights; the company owns and licenses several patents in the United States and foreign countries that cover the pharmaceutical products, formulas, chemical compounds, and processes used in manufacturing. The other intangible asset is the developed technology rights recognized and valued at $73545 million per 31st December 2020. Ultimately, the recognition of intangible assets is measured at cost or using the revaluation model, and most of the company’s intangible assets have a useful life span (Pfizer, n.d).
Non-recognition of intangible assets is a very common aspect of business, and this is due to the failure to measure the exact value of the assets or measurement errors. The major consequences of the non-recognition of intangible assets are that it affects both the valuation and stewardship of the organization. For Pfizer, internally developed intangible assets d...