According to the requirements of income standard, four conditions should be met to confirm income: (1) The enterprise has transferred the main risks and rewards of commodity ownership to the buyer; (2) The enterprise neither retains the right to continue management, which is usually associated with ownership, nor controls the goods that have been sold; (3) the economic benefits related to the transaction can flow into the enterprise; (4) Relevant income and costs can be measured reliably.
Although the ownership of commodities has been transferred to the buyer in normal sales, consignment, exchange and distribution, due to the monopoly power of hospitals, clinics and pharmacies, customers generally have the right to return drugs as long as they do not transfer them to the final consumers. Therefore, the sovereign risk of drug ownership cannot be transferred to the buyer. Because pharmaceutical companies can return drugs returned by hospitals, clinics and pharmacies to pharmaceutical manufacturers, the sovereign risk of drug ownership is not really borne by pharmaceutical companies. Therefore, the income recognized by pharmaceutical companies after drug sales basically meets the income standard.
After drugs are sold to pharmaceutical companies or hospitals, clinics and pharmacies, even if all the payment has been recovered, as long as there is the possibility of continuing the transaction, there is a risk of drug return, but this risk can be estimated under normal business conditions and belongs to the controllable range, so the income can still be confirmed. Under abnormal circumstances, such as pharmaceutical companies meeting GSP standards, when the provincial batch number of drugs is changed to the national batch number, a large number of drugs are returned. At this time, it is very risky to return the income confirmed by previous annual sales. Therefore, whether the drug production company can confirm the income from drug sales should be fully evaluated before confirmation. It is generally believed that income should be recognized after drug sales.
2. Confirmation of income from normal sales, agency sales and rapid batch sales
Normal sales, agency sales and rapid batch sales have real logistics and cash flow, and meet the four conditions of income standards. Therefore, it can be recognized as income after the goods are sent out and the other party confirms the receipt of the goods or the payment for goods.
3. Confirmation of ticket revenue
The vast majority of ticket merchants do not have real logistics and do not constitute real sales resources for pharmaceutical companies. They only confirm their income by issuing invoices, which does not meet the basic conditions of commodity sales-commodities exist and cannot be recognized as sales income. However, in some bill delivery business, although the drugs did not enter the warehouse of the first-class agent pharmaceutical factory, the first-class agent pharmaceutical factory actually controlled the flow of drugs in the actual delivery process, and the drug ownership risk was transferred from the drug production enterprise to the first-class agent pharmaceutical factory and then to other pharmaceutical factories, which met the four conditions of income standard. After the goods were sent out, the vouchers of other pharmaceutical factories confirmed the receipt of the goods or the payment for goods, which could be recognized as income. This kind of business is essentially agency business. The business that two or less companies invoice each other, but there is no actual drug flow, belongs to fictitious income behavior, which can be classified as bill delivery business, and does not meet the basic conditions of commodity sales-the existence of commodities cannot be recognized as sales income.