Cellmid 2017 Annual Report

NOTES TO THE

FINANCIAL STATEMENTS

CONTINUED

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.

Intangible assets, have ﬁnite useful lives. The Group has determined the useful life of the intangible assets at 20 years.

The remaining useful life is 17 years.

2017 2016

$ $

Patents and trademarks

At cost 2,301,371 2,605,267

Accumulated amortisation and foreign exchange movements (459,986) (390,574)

1,841,385 2,214,693

Movements in carrying amounts of patents and trademarks

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

Balance at 1 July 2015 1,898,942

Additions -

Amortisation (116,562)

Foreign exchange movements 432,313

Balance at 30 June 2016 2,214,693

Consolidated