Simon Friend, global pharma leader, PriceWaterhouseCoopers, LLC, was in India and spoke with BW's Gina S. Krishnan on issues ranging from financial reporting standards for companies to the changing industry environment.

• On International Financial Reporting Standards (IFRS):
  
  The European Union has already announced 2005 as the date for moving from the generally accepted accounting principles (GAAP) to IFRS. In the long run, as businesses come under the World Trade Organization and assuming the future capital markets come closer, it makes sense to have a single accounting standard for every company so that they can access the big markets.
• On how IFRS is different from other standards:
  
  In IFRS, costs incurred by companies on internal development, R&D, generics, marketing, advertising, in-licensing and out-licensing agreements, even donations and grants for research and legal costs, etc. are all dealt with separately. The idea is to remove existing ambiguities and make the process more transparent.
  
  
• On how it will help Indian pharma companies considering only three are listed either on NYSE or NASDAQ:
  
  For Indian companies to take to IFRS sooner is beneficial as they become part of the WTO next year. A global accounting standard will give them access to finance from the global markets, as well as a deeper understanding of how these markets operate.