mdg-annual-report-2013

Recommendations

Info

72 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDiscretionary judgmentsThe company’s management made the following discretionary judgments which significantly impact the figures in thefinancial statements when applying the accounting and valuation methods.Recording specific sales transactionsThe management exercises its discretion when determining whether specific sales transactions essentially representfinancing agreements, which means that no sales revenue is achieved on the basis of these transactions. With effectfrom 1 April 2012, Medigene transferred future cash flows in connection with the 2% share in revenue from EuropeanEligard ® net sales from Astellas to Cowen Healthcare Partners II, L.P., USA (hereinafter referred to as »Cowen«) inreturn for a payment of $17.7 m (equivalent to €14.1 m at the time of cash inflow). The cash inflow from this transactionwas treated as a financial liability and classified as financial liability valued at amortised cost. The assigned licencefee claims are realised pro rata (€208 k monthly) as other operating income over the Eligard ® patent term ofapprox. ten years with impact on income, and the financial liability associated with the transfer will be amortised,taking into account the interest. Financial liabilities include the long-term portion of the liability (2013: €10,356 k;2012: €11,906 k). The short-term portion of the liability is reported under other financial liabilities (2013: €1,044 k;2012: €927 k). For further details ≥ see notes (27), (33) and (54).Recording of one-time paymentsThe recording of one-time payments requires an assessment of whether the agreed payment will be made for servicesrendered or for those still to be rendered. If, in the view of the management, all contractually agreed services havebeen performed and the remaining requirements for the realisation of revenue are met, the one-time payments arerecognised immediately as income.Deferred tax assets from loss carryforwardsThe recognition of deferred tax assets requires certain assumptions to be made within the management’s discretion.They mainly concern the assessment of the circumstances and the period in which tax assets can be realised by theuse of existing loss carryforwards. The management has decided not to recognise tax assets in the extent to whichthey exceed the tax liabilities, since the generation of taxable income in the future is connected with too much uncertainty.Capitalisation of development expensesDevelopment expenses must be capitalised if the requirements for this in accordance with IAS 38 are met. This requiresthe management to make a number of estimates and assumptions. In the period ending on 31 December 2013,no development expenses were capitalised due to the fact that the management did not believe all the necessaryrequirements in accordance with IAS 38 had been met. This was due to the usual uncertainties in drug developmentand the unpredictability of regulatory provisions.Estimates and assumptionsThe most important assumptions regarding the future and other key sources of estimation uncertainty as at the balancesheet date which entail an appreciable risk that it might become necessary to adjust the carrying amounts ofassets and liabilities within the next fiscal year are explained below:Impairment of goodwill and intangible assetsThe Group examines at least once per year whether goodwill is impaired. This requires, among other things, estimatingthe value in use of the underlying research and development projects which are allocated to both the goodwill and thecash-generating units. As the projects are not yet available for use, they are tested for impairment once a year. Inorder to estimate the value in use, the management must assess the expected future cash flows of the individual projectsand the chances of the underlying projects showing successful development and select an appropriate discountrate. Given the length of the planning periods (up to 21 years), the assumptions and forecasts associated with this are
MEDIGENE AG ANNUAL REPORT 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 73subject to a significant degree of uncertainty. Please refer to ≥ note (37) for the methodology of the impairment testand its results and presentation.Fair ValueFair values are generally determined on the basis of market prices. The fair values of financial assets and liabilities forwhich no market prices can be determined are ascertained using valuation methods which include the discounted cashflow method. The input parameters incorporated in the model are based, wherever possible, on observable marketdata. If this is not possible, fair values are determined to a certain extent on the basis of discretionary judgments.These discretionary judgments concern input parameters such as liquidity risk, credit risk, and volatility. Changes inthe assumptions relating to these factors could affect the fair values reported for the financial instruments. Medigenehas some measured financial assets and liabilities at fair value ≥ note (54).(5) Consolidation of subsidiariesConsolidation principlesThe consolidated financial statements are comprised of the individual financial statements of Medigene AG and itssubsidiaries as per 31 December of any given fiscal year. The financial statements of the companies within the reportingentity are prepared according to uniform accounting and valuation methods.All intragroup balances, transactions, income, expenses, and profits and losses arising from intragroup transactionsincluded in the carrying amount of assets have been eliminated in full.Reporting entityThere were no changes in the reporting entity compared with the previous year. The acquisition of Trianta ≥ note (55)which was completed after the reporting date is not consolidated.SubsidiariesSubsidiaries are all companies for which the Group has the capacity to determine financial and commercial policy.This regularly entails a share of over 50% in the voting rights. When it is being assessed whether there is a controllinginterest, the existence and effect of potential voting rights that can be exercised or converted at that time are takeninto consideration. Subsidiaries are included in the consolidated financial statements (full consolidation) starting atthe point in time when the Group acquired a controlling interest. The consolidation is concluded as soon as the parentcompany no longer has control.SUBSIDIARYCONSOLIDATED COMPANYAS AT 31 DEC 2013MEDIGENE, INC.Registered officeSAN DIEGO,USAPercentage of share in % 100Shareholders‘ equity in € k 1,457Net result for the year in € k -195
Page 6 and 7:
6 Interview with the Executive Boar
Page 8 and 9:
8 KapitelT … as in TRANSACTIONSDe
Page 10 and 11:
10 KapitelT … as in THERAPEUTIC A
Page 12 and 13:
12 KapitelT … as in T cellsTechno
Page 14 and 15:
14 KapitelT … as in teamworkJoini
Page 16 and 17:
16 KapitelT … as in TRENDFinancia
Page 18 and 19:
18 pipelinepipelinemarketed drugsin
Page 20 and 21:
20productsVeregen®ProduCt Indicati
Page 22 and 23: 22productsRhuDex®Product Indikatio
Page 24 and 25: 24productsImmunotherapiesImmunother
Page 28: 28 the shareThe ShareShare price pe
Page 31 and 32: Medigene AG Annual report 2013 Kapi
Page 34 and 35: 34 GROUP MANAGEMENT’S DISCUSSION
Page 40: 40 GROUP MANAGEMENT’S DISCUSSION
Page 51 and 52: MEDIGENE AG ANNUAL REPORT 2013 GROU
Page 61 and 62: CONTENTCONSOLIDATED FINANCIAL STATE
Page 63 and 64: MEDIGENE AG ANNUAL REPORT 2013 CONS
Page 70 and 71: 70 NOTES TO THE CONSOLIDATED FINANC
Page 100 and 101: 100 NOTES TO THE CONSOLIDATED FINAN
Page 122 and 123:
122 NOTES TO THE CONSOLIDATED FINAN
Page 124 and 125:
124 NOTES TO THE CONSOLIDATED FINAN
Page 126 and 127:
126 AUDIT OPINIONAUDIT OPINIONWe is
Page 128 and 129:
128 RESPONSIBILITY STATEMENTRESPONS
Page 130 and 131:
130 REPORT OF THE SUPERVISORY BOARD
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
136 GLOSSARYGLOSSARYAAAVLPAdeno-ass
Page 138 and 139:
138 GLOSSARYEEBITDAEarnings before
Page 140 and 141:
140 GLOSSARYMMajor histocompatibili
Page 142 and 143:
142 GLOSSARYTecDAXIndex of the Germ
Page 144:
144 FINANCIAL CALENDAR/ TRADEMARKS/
show all

mdg-annual-report-2013

Create successful ePaper yourself

Delete template?

Save as template?