3.1 Intangible Assets
In application of the provisions in IAS 38 Intangible Assets (“IAS 38”), intangible assets acquired are recorded as assets on the Consolidated Statements of Financial Position at their acquisition cost.
Research and Development Expenses
Research expenses are recorded in the Financial Statements as expenses.
In accordance with IAS 38, development expenses are recorded in the Financial Statements as intangible assets only if all the following criteria are met:
| (a) | technical feasibility necessary for the completion of the development project; |
| (b) | intention on the part of the Company to complete the project and to utilize it; |
| (c) | capacity to utilize the intangible asset; |
| (d) | proof of the probability of future economic benefits associated with the asset; |
| (e) | availability of the technical, financial, and other resources for completing the project; and |
| (f) | reliable evaluation of the development expenses. |
Because of the risks and uncertainties related to regulatory authorizations and to the research and development process, the Company believes that the six criteria stipulated by IAS 38 are only fulfilled once the Market Access Authorization has been obtained from the competent authorities.
The application of this principle has resulted in all development costs being expensed as incurred.
Software
The costs related to the acquisition of licenses to software are posted to assets on the basis of the costs incurred to acquire and to implement the software in question.
They are amortized using the straight-line method over a period of one to three years depending on the anticipated period of use.