2013 Apr 15 Annual Report 2012 - Phosphagenics

Notes to the consolidated fi nancial statements
10. INTANGIBLE ASSETS
2012
Intellectual
Property
$000
Development
costs
$000
Total
$000
Balance at 1 January 2012 net of accumulated
amortisation and impairment 43,255 1,402 44,657
Additions internally developed - - -
Provision for impairment - - -
Amortisation (4,621) (66) (4,687)
Balance at 31 December 2012 net of
accumulated amortisation and impairment 38,634 1,336 39,970
At 31 December 2012
Cost (gross carrying amount) 121,362 3,295 124,657
Accumulated amortisation and impairment (82,728) (1,959) (84,687)
Net carrying amount 38,634 1,336 39,970
2011
Intellectual
Property
$000
Development
costs
$000
Total
$000
Balance at 1 January 2011 net of accumulated
amortisation and impairment 45,577 1,469 47,046
Additions internally developed - - -
Provision for impairment - - -
Amortisation (2,322) (67) (2,389)
Balance at 31 December 2011 net of
accumulated amortisation and impairment 43,255 1,402 44,657
93
At 31 December 2011
Cost (gross carrying amount) 121,362 3,295 124,657
Accumulated amortisation and impairment (78,107) (1,893) (80,000)
Net carrying amount 43,255 1,402 44,657
Impairment Testing
Intellectual Property
Intellectual property assets cost represent the fair value of patents acquired by the Company
at 31 December 2004.
Certain intellectual property assets, acquired patents, are deemed to have a fi nite life and are amortised from
the date signifi cant revenues are earned over the remaining patent life. Up until 30 June 2011 Phosphagenics
Limited was yet to earn signifi cant revenues from acquired patent assets, therefore these assets had not yet
been amortised. However with signifi cant revenues commencing during the reporting period, amortisation
of these patents commenced from 1 July 2011, with an amortisation period ranging from between
8.8 to 12.1 years. These assets are tested for impairment where an indicator of impairment arises.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS