Intangible assets
Internally generated intangible assets
Research expenses are charged to the statement of comprehensive income as incurred. Development costs are only capitalized if the following conditions are met:
| • | the technical feasibility of completing the intangible asset; |
| • | the intention to complete the intangible asset and use or sell it; |
| • | the generation of probable future economic benefits; |
| • | the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
| • | its ability to measure reliably the expenditure attributable to the intangible asset during its development. |
At present, the current stage of research activities does not allow any capitalization of intangible assets. The existing regulatory and clinical risks constitute an important uncertainty with respect to the capitalization of development costs. The research and development expenses are not capitalized, as long as the criteria under IFRS are not met.
As no internally generated assets are recognized, all costs with respect to the protection of intellectual property are expensed as research and development expenses.
Purchased intangible assets
Acquired computer software licenses are capitalized based on the costs incurred to acquire and bring to use the specific software. These costs are amortized on a straight-line basis over their estimated useful lives of maximum three years.
Acquired knowledge in the form of licenses and patents is recorded at cost less accumulated amortization and impairment. It is amortized on a straight-line basis over the shorter of the term of the license agreement and its estimated useful life.
The Company does not have intangible fixed assets with an indefinite useful life.