Research and development
Research expenses are charged to the consolidated statement of comprehensive loss as incurred. Development expenses are capitalized as intangible assets when it is probable that future economic benefits will flow to the Group, and the following criteria are fulfilled:
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it is technically feasible to complete the intangible asset so that it will be available for use or sale; |
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management intends to complete the intangible asset and use or sell it; |
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there is an ability to use or sell the intangible asset; |
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adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and |
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the expenditure attributable to the intangible asset during its development can be reliably measured. |
In the opinion of management, due to uncertainties inherent in the development of the Group’s product candidates, the criteria for development costs to be recognized as an asset as defined by IAS 38 Intangible Assets are not met.