ANNUAL REPORT 2012 - TiGenix

consideration transferred in a business
combination is measured at fair value, which
is calculated as the sum of the acquisitiondate
fair values of the assets transferred by
the Group, liabilities incurred by the Group
to the former owners of the acquiree and
the equity interests issued by the Group
in exchange for control of the acquiree.
Acquisition-related costs are generally
recognized in profit or loss as incurred.
At the acquisition date, the identifiable
assets acquired and the liabilities assumed
are recognized at their fair value, except
for deferred tax assets and liabilities, assets
and liabilities relating to employee benefits,
liabilities or equity-instrument related to
share-based payment arrangements and
assets that are classified as held for sale.
Goodwill is measured as the excess of the
sum of the consideration transferred, the
amount of any non-controlling interests in the
acquiree, and the fair value of the acquirer’s
previously held equity interest in the acquiree
(if any) over the net of the acquisitiondate
amounts of the identifiable assets
acquired and the liabilities assumed. If, after
reassessment, the net of the acquisition-date
amounts of the identifiable assets acquired
and liabilities assumed exceeds the sum of
the consideration transferred, the amount of
any non-controlling interests in the acquiree
and the fair value of the acquirer’s previously
held interest in the acquiree (if any), the
excess is recognized immediately in profit or
loss as a bargain purchase gain.
The results of the acquired operations are
included in the consolidated statements
of comprehensive income from the date
on which control is obtained. They are
deconsolidated from the date control ceases.
11.5.2.6. Revenue recognition
Revenue from sale of goods is recognized
when :
- the significant risks and rewards of the
ownership of goods are transferred to the
buyer; The Group retains neither effective
control nor involvement to the degree
usually associated with ownership over the
goods sold;
- the amount of revenue can be measured
reliably;
- it is probable that the economic benefits
associated with the transaction will flow to
the entity; and
- the costs incurred or to be incurred in
respect of the transaction can be measured
reliably.
License fees are recognized when the Group
has fulfilled all conditions and obligations.
The license fee will not be recognized if the
amount cannot be reasonably estimated
and if the payment is doubtful. License upfront
(signature fees) and non-refundable
fees for access to prior research results and
databases are recognized when earned,
provided that the Group has no continuing
performance obligations and all conditions
and obligations are fulfilled (this means after
the delivery of the required information).
If the Group has continuing performance
obligations towards fees, the fee will be
recognized on a straight-line basis over the
contractual performance period.
Research and development service fees are
recognized as revenue over the life of the
research agreement as the required services
114 TiGenix I annual report 2012