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EXCEL - IDEA: XBRL DOCUMENT - ARIAD PHARMACEUTICALS INCFinancial_Report.xls
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v2.4.0.6
Management Statement and Accounting Policies
9 Months Ended
Sep. 30, 2012
Management Statement and Accounting Policies
1. Management Statement and Accounting Policies

In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of September 30, 2012, the results of operations for the three-month and nine-month periods ended September 30, 2012 and 2011, and cash flows for the nine-month periods ended September 30, 2012 and 2011. The results of operations for the three-month and nine-month periods ended September 30, 2012 are not indicative of the results to be expected for any other period or the full year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, which includes consolidated financial statements and notes thereto for the years ended December 31, 2011, 2010 and 2009. Other than as discussed below or in footnote 13, Recently Issued Accounting Pronouncements, there were no other changes to the Company’s significant accounting policies disclosed in the Company’s Annual Report on Form 10-K.

Foreign Currency

A subsidiary’s functional currency is the currency of the primary economic environment in which the subsidiary operates; normally, that is the currency of the environment in which a subsidiary primarily generates and expends cash. For subsidiaries that are primarily a direct and integral component or extension of the parent entity’s operations, the U.S. dollar is the functional currency.

For foreign subsidiaries where the functional currency is the U.S. dollar, monetary assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Revenue and expense items are translated at average rates of exchange prevailing during each period. The Company has established the U.S. dollar as the functional currency of subsidiaries that are holding companies and its primary European operating entity. The Company does not have significant subsidiary operations with the functional currency denominated as the local currency as of September 30, 2012.