Company: IMCR
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001671927-25-000006
Chunk: 257

Company: Immunocore Holdings plc
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 257
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 a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue from sale of therapies, net – Deductions for government rebates — Refer to Notes 2 and 3 to the financial statements

Critical Audit Matter Description

As more fully disclosed in the Significant Accounting Policies note to the financial statements, the Company recognizes revenue from sale of therapies at the net sales price, which includes deductions for which reserves are established. These deductions include rebates, chargebacks, levies and product returns.

F-2

Table of Contents

Government rebates are provided in relation to programs in certain jurisdictions in which the Company operates. In certain of these jurisdictions, particularly in newer markets where there is less history of rebate claims, management is required to make significant assumptions and judgments to estimate the government rebate claims related to sales in the respective geographies. These assumptions and judgements include:

(1)pricing in geographies where negotiations are ongoing with the respective governments;

(2)amounts where the government has the potential to clawback additional costs based on volume of sales, government budgets or through renegotiation of pricing; and

(3)future claims yet to be received, related to products sold in the reporting period.

These estimates include consideration of internal forecasts of the patient and distributor mix, information obtained from historic claims received and other industry data, and external health coverage statistics.

We identified deductions and accrual for government rebates in certain jurisdictions where there is less history of rebate claims as a critical audit matter given the complexity involved in determining the significant assumptions and judgments used in estimating the anticipated government rebate claims, which in turn led to a high degree of auditor professional judgment and increased extent of audit effort in auditing such estimates.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the government rebates, included the following, among others:

-We tested the effectiveness of controls over management’s processes to account for the deductions associated with government rebates, including controls over determining the underlying assumptions and key inputs into the Company’s process to calculate government rebate adjustments.

-We inspected contractual documents and communications with government agencies and third party advisors associated with the government rebates, and evaluated the consistency of the estimation methodology with the Company’s obligations under such contractual documents and communications.

-We tested the mathematical accuracy of the Company’s calculation of the estimates for government rebates.

-We evaluated whether the accounting treatment for the anticipated government rebate claims is consistent with the relevant accounting standard, ASC 606 Revenue Recognition.

-We performed the