Gschäftsbericht 2018

Galenica financial statements 2018 | 105 Finance Notes to the consolidated financial statements of the Galenica Group 15. Intangible assets Accounting principles Intangible assets include acquired trademarks, patents, licences, purchased or internally developed software and other assets without physical substance. These items are measured at cost less accumulated amortisation and impairment. The cost of an intangible asset acquired in a business combination corresponds to its fair value determined at acquisition date. Expenditure on internally developed software is capitalised when the capitalisation criterias are met and future economic benefits from use or sale of the software are expected. Software that is not yet available for use is tested for impairment annually or more frequently if there are indications of impairment. Amortisation is charged on a straight-line basis over the estimated economic or legal useful life, whichever is shorter as follows: Years Trademarks, patents, licences 5–20 Software 2–7 The amortisation period and the amortisation method are reviewed at least at each financial year-end. With the exception of two trademarks at Verfora, all intangible assets are assessed as having a finite useful life. Intangible assets with indefinite useful lives are not amortised but tested for impairment annually or more frequently if there are indications of impairment. Intangible assets with finite useful lives are tested for impairment whenever there are indica- tions that they could be impaired. Any Impairment is recognised in profit or loss in depreciation and amortisation and disclosed separately as an impairment. in thousand CHF Trademarks, patents, licenses, with finite useful lives Trademarks with indefinite useful lives Acquired software Internally developed software Goodwill Total intangible assets Net carrying amount as at 31.12.2016 2,806 21,590 6,317 6,861 605,516 643,090 Addition — 14,938 8,308 2,740 — 25,986 Amortisation (1,529) — (3,112) (2,610) — (7,251) Addition to scope of consolidation 3,994 — 41 — 27,820 31,855 Disposal from scope of consolidation — — — (660) — (660) Incorporation of Galenica Ltd. — — 71 — — 71 Net carrying amount as at 31.12.2017 5,271 36,528 11,625 6,331 633,336 693 , 091 Addition — — 20,108 2,451 — 22,559 Reclassification — — (98) — — (98) Amortisation (886) — (3,067) (2,408) — (6,361) Addition to scope of consolidation 568 — 14 — 58,137 58,719 Net carrying amount as at 31.12.2018 4 , 953 36 , 528 28 , 582 6 , 374 691 , 473 767 , 910 Overview as at 31.12.2017 Cost 10,998 36,528 43,947 29,070 633,336 753,879 Accumulated amortisation and impairment (5,727) — (32,322) (22,739) — (60,788) Net carrying amount as at 31.12.2017 5,271 36,528 11,625 6,331 633,336 693,091 Overview as at 31.12.2018 Cost 11,565 36,528 63,665 31,737 691,473 834,968 Accumulated amortisation and impairment (6,612) — (35,083) (25,363) — (67,058) Net carrying amount as at 31.12.2018 4,953 36,528 28,582 6,374 691,473 767,910