Annual Report 2012 - Acino

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ACINO GROUP | FINANCIAL REPORT
ACINO GROUP
Extract from notes to the consolidated financial statement
The complete notes to the consolidated financial statement are shown in the separate Finance & Corporate Governance Report 2012. Only some
material points are shown on the following lines.
1 General Information
The Group’s parent company, Acino Holding AG, is a swiss joint-stock corporation headquartered in Basle. Its shares are listed on the sIX swiss
Exchange.
These consolidated financial statements were approved for publication by the Board of Directors on February 25, 2013.
2 Summary of significant accounting and valuation policies
Acino Group’s consolidated financial statement has been prepared in Euro (EUR) on, unless otherwise stated in the following description of
accounting policies, the historical cost basis and are consistent with the Inter national Financial Reporting standards (IFRs), as issued by the
International Accounting standards Board (IAsB), and comply with swiss statutory requirements. The following accounting policies have been
consistently applied to all the accounting periods reported in these financial statements.
The preparation of financial statements requires estimates and assumptions to be made by Group management which can influence the
amounts of recognized and contingent assets and liabilities assets at the balance sheet date as well as expenses and earnings recognized
during the reporting period. It is possible for actual results to be at variance with such estimates.
– Property, plant and equipment are recognized at their historical purchase/manufacturing cost, less accumulated depreciation. Purchase
and manufacturing costs include directly attributable acquisition costs.
– Goodwill is the amount by which the acquisition cost of a company exceeds the fair value of the Group’s share of the acquired
company’s net assets on the date of acquisition. Goodwill is subject to annual impairment testing and is recognized at acquisition cost
less accumulated impairment losses.
– Costs incurred within the scope of development projects (in connection with the registration of new products) are recognized as
intangible assets to the extent that it is considered probable that such projects will be commercially successful, are technically feasible
and the costs can be reliably determined. Development costs capitalized in connection with work performed by the entity are separately
reported in the income statement. Development projects acquired as part of a business combination are separately measured and
recognized at fair value as part of the allocation of acquisition costs, and correspondingly listed as assets. Capitalized development costs,
with limited useful lives, are amortized over their expected useful lives (5 to 10 years) commencing at the onset of commercial
production.
– sales revenues are recognized on the transfer of goods by a Group company to a buyer, when the buyer has accepted the goods and the
collectability of the resultant receivable is believed to be sufficiently assured. The Group has signed contracts with several customers
for several products, according to which a portion of the compensation for the supplied goods depends on the sales volumes and sale prices
achieved by the customer. In such cases, the revenues from the sales of goods are recognized on an accruals basis in accordance with
the provisions of the relevant underlying agreement. In the event that the licensee’s financial statements have not been finalized by the
balance sheet date, sales revenues are estimated based upon past amounts and forecasts, and then recognized in profit or loss prior
to collection. Any advance payments already received for sales that have not yet been realized will be listed in the balance as deferred
revenue.
– Revenues from licensing (Royalties) are recognized on an accruals basis in accordance with the provisions of the relevant underlying
agreement. Revenues from licensing can be determined with reference to the licensee’s revenues. In the event that the licensee’s
financial statements have not been finalized by the balance sheet date, royalties are estimated based upon past amounts and forecasts,
and recognized under profit or loss prior to collection. If royalties are collected in association with goods supplied, then these are listed
under sales of goods.
– Revenues derived from the rendering of development services, based upon corresponding development, production and supply contracts,
are recognized over the term of the production and supply contract, subject to the completion of the development period. Invoiced
milestone payments for these development services are reported as deferred revenue until the commencement of production. Any
development and service revenues unsupported by long-term contracts are normally recognized as revenue upon completion of the full
rendering of the service.
– Provisions are created to the extent that the Group has a legal or de facto obligation arising from past events, the settlement of which
will result in a reduction in assets, while the amount of the provision can be reliably assessed.