ANNUAL FINANCIAL REPORT 2010 2010 - TiGenix

) Standards and interpretations issued but not yetin effectAt the date of these stand-alone financial statements wereprepared, the following standards and interpretations had beenpublished by the International Accounting Standards Board(IASB) but were not in effect, either because their effective datefell later than the date of the stand-alone financial statementsor because they had not yet been adopted by the EuropeanUnion:Standards and amendments to standardsObligatory application in the yearsbeginning on or afterApproved for use in the EUAmendment IAS 32 Classification of rights issues February 1, 2010Revision IAS 24 Related party disclosures January 1, 2011Amendment IFRIC 14 Minimum funding requirements January 1, 2011IFRIC 19 Extinguishing financial liabilities with equity instruments July 1, 2010Not approved for use in EUIFRS 9 Financial instruments: Classification and measurement January 1, 2013Improvements to IFRSs Amendments to a series of standards Several (mainly January 1, 2011)Amendment IFRS 7 Disclosures on transfers of financial assets July 1, 2011Amendment IAS 12 Measurement of deferred tax relating to investment property January 1, 2012The directors have reviewed the potential impact of theapplication of these standards in the future and consider thatthey will have no material impact on the stand-alone financialstatements when they become effective.Estimates made and sources of uncertainlyIn the stand-alone financial statements, estimates have beenused that were prepared by the management of Cellerix (laterratified by its directors) to quantify some assets, liabilities,revenues, expenditure and commitments that are recordedthere. Those estimates basically refer to:• The useful life of tangible and intangible assets.• Evaluation of recognition criteria for revenues in respect ofagreements made with third parties concerning licenses andproduct development.• The market value of certain assets and liabilities.• Impairment losses of certain tangible and intangible assets.• Assessment of lawsuits, commitments and assets andliabilities, which were contingent at closing.These estimates were made on the basis of the best availableinformation on the items analysed. Nevertheless, it is possiblethat events could take place in the future that might requirethem to be adjusted upwards or downwards in future years,which would be done as provided in IAS 8, on a prospectivebasis, and the effects of a change in estimation would berecorded in the relevant stand-alone comprehensive incomestatement.Going concern principleCellerix has incurred losses since its incorporation, due to thenature of Cellerix’ present activity and its major investmentsin clinical drug research and development and it has obtainedthe resources it needs in order to finance its activities throughcapital increases and grants primarily received from publicbodies.On November 10, 2009 Cellerix’ shareholders undertookto invest in Cellerix €27 million in Class C shares, in severaltranches, in the framework of an investment agreement. Thefirst tranche of €5 million was disbursed in 2009, while a secondtranche of €4 million was disbursed on October 15, 2010.203 •