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Note B - Basis of Presentation and Recent Accounting Pronouncements
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6 Months Ended |
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Jun. 30, 2011
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| Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
B. NOTE
B - BASIS OF PRESENTATION AND RECENT ACCOUNTING
PRONOUNCEMENTS
The
accompanying unaudited condensed financial statements have
been prepared in accordance with accounting principles
generally accepted in the United States of America for
interim financial information and with the instructions to
Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the
information and footnotes required by accounting principles
generally accepted in the United States of America for
complete annual financial statements. In the
opinion of management, all adjustments considered
necessary for a fair presentation, which are of a normal and
recurring nature only, have been
included. Operating results for the six-month
period ended June 30, 2011 are not necessarily indicative of
the results that may be expected for the year ending December
31, 2011. For further information, please refer to
our financial statements and footnotes thereto included in
Unigene’s annual report on Form 10-K for the year ended
December 31, 2010.
RECENT
ACCOUNTING PRONOUNCEMENTS
In
May 2011, an update to guidance was issued clarifying how to
measure and disclose fair value. This guidance
amends the application of the “highest and best
use” concept to be used only in the measurement of fair
value of nonfinancial assets, clarifies that the measurement
of the fair value of equity-classified financial instruments
should be performed from the perspective of a market
participant who holds the instrument as an asset, clarifies
that an entity that manages a group of financial assets and
liabilities on the basis of its net risk exposure can measure
those financial instruments on the basis of its net exposure
to those risks, and clarifies when premiums and discounts
should be taken into account when measuring fair
value. The fair value disclosure requirements also
were amended. The Company does not believe that
the adoption of the amended guidance will have a significant
effect on its financial statements.
On
January 1, 2011, we adopted new authoritative guidance
on revenue recognition for multiple-element arrangements. The
guidance, which applies to multiple-element arrangements
entered into or materially modified on or after
January 1, 2011, amends the criteria for separating and
allocating consideration in a multiple-element arrangement by
modifying the fair value requirements for revenue recognition
and eliminating the use of the residual method. The fair
value of deliverables under the arrangement may be derived
using a “best estimate of selling price” if
vendor specific objective evidence and third-party evidence
is not available. Deliverables under the arrangement will be
separate units of accounting provided (i) a delivered
item has value to the customer on a standalone basis; and
(ii) if the arrangement includes a general right of
return relative to the delivered item, delivery or
performance of the undelivered item is considered probable
and substantially in our control. We did not enter into or
materially modify any multiple-element arrangements during
the six months ended June 30, 2011. Our existing agreements
continue to be accounted for under previously-issued revenue
recognition guidance for multiple-element
arrangements.
On
January 1, 2011, we adopted new authoritative guidance
on revenue recognition for milestone payments related to
arrangements under which we have continuing performance
obligations. Milestone payments are recognized as revenue
upon achievement of the milestone only if all of the
following conditions are met: (i) the milestone payments
are non-refundable; (ii) there was substantive
uncertainty at the date of entering into the arrangement that
the milestone would be achieved; (iii) the milestone is
commensurate with either the vendor’s performance to
achieve the milestone or the enhancement of the value of the
delivered item by the vendor; (iv) the milestone relates
solely to past performance; and (v) the amount of the
milestone is reasonable in relation to the effort expended or
the risk associated with the achievement of the milestone. If
any of these conditions are not met, the milestone payments
are not considered to be substantive and are, therefore,
deferred and recognized as revenue over the term of the
arrangement as we complete our performance obligations. Upon
achievement of any future regulatory and sales milestones, as
stipulated under the applicable agreements with our licensing
partners, we will evaluate each milestone as of the
arrangement date to determine whether the milestones are
substantive and could be recognized as revenue in their
entirety during the period of achievement. The adoption of
this guidance does not materially change our previous method
of recognizing milestone payments. All potential future
milestones under existing arrangements with licensing
partners, as specified below, and any new arrangements with
milestones, will be evaluated under the new revenue
recognition guidance for milestone payments.
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UNIGENE LABORATORIES INC - FORM 10-Q - XML - IDEA: XBRL DOCUMENT - August 9, 2011
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