Cellmid 2018 Annual Report
46
NOTES TO THE
FINANCIAL STATEMENTS
CONTINUED
14. INTANGIBLE ASSETS
Accounting Policy
Patents and trademarks
Patents and trademarks have a finite life and are measured at cost less any accumulated amortisation and any impairment losses.
Research and development
Expenditure on research activities is recognised as an expense in the period in which is incurred.
Impairment of intangible assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired.
The assessment includes the consideration of external and internal sources of information. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s
fair value less costs to sell and value in use, to the asset’s carrying amount. The recoverable amounts of the asset is determined
based on reviewing the status of the research and development program, progress on its patent applications and projected
cash flow calculations. These calculations require the use of assumptions, including estimating timing of cash flows, product
development and availability of resources to exploit the assets.
Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash generating unit to which the asset belongs.
2018 2017
$ $
Patents and trademarks
At cost 2,424,193 2,301,371
Accumulated amortisation (605,689) (459,986)
1,818,504 1,841,385
Movements in carrying amounts of patents and trademarks
$
Balance at 1 July 2017 1,841,385
Additions -
Amortisation (115,571)
Foreign exchange movements 92,690
Balance at 30 June 2018 1,818,504
Balance at 1 July 2016 2,214,693
Additions -
Amortisation (120,802)
Foreign exchange movements (252,506)
Balance at 30 June 2017 1,841,385