CSL Ltd Annual Report 2021

Note 7: Intangible Assets Goodwill US$m Intellectual Property US$m Software US$m Intangible capital work in progress US$m Total US$m Year 2021 2020 (restated) 6 2021 2020 (restated) 6 2021 2020 2021 2020 2021 2020 (restated) 6 Cost 1,188.1 1,187.2 1,131.1 693.5 789.8 696.1 77.7 133.4 3,186.7 2,710.2 Accumulated amortisation – – (195.6) (184.0) (321.4) (235.2) – – (517.0) (419.2) Net carrying amount 1,188.1 1,187.2 935.5 509.5 468.4 460.9 77.7 133.4 2,669.7 2,291.0 Movement Net carrying amount at the beginning of the year 1,187.2 1,101.8 509.5 233.5 460.9 394.6 133.4 148.4 2,291.0 1,878.3 Additions 7 – – 450.0 – 8.1 44.2 31.3 76.8 489.4 121.0 Business acquisition (Note 1b) – 85.6 – 305.8 – – – – – 391.4 Transfers from intangible capital work in progress – – – – 84.1 93.1 (84.1) (93.1) – – Transfers to/from property, plant and equipment – – – – – (1.0) (0.9) – (0.9) (1.0) Disposals – – – (25.2) – – – (0.1) – (25.3) Reclassification to expenses due to SaaS accounting policy change (refer to Note g) – – (5.1) – (10.3) – (1.2) – (16.6) – Amortisation for the year 8 – – (0.9) (3.7) (95.0) (68.8) – – (95.9) (72.5) Impairment for the year 9 – – (19.9) – – – – – (19.9) – Currency translation differences 0.9 (0.2) 1.9 (0.9) 20.6 (1.2) (0.8) 1.4 22.6 (0.9) Net carrying amount at the end of the year 1,188.1 1,187.2 935.5 509.5 468.4 460.9 77.7 133.4 2,669.7 2,291.0 6 The comparative balances have been restated to reflect the finalisation of the Vitaeris’ acquisition accounting (refer to Note 1b). 7 O n 24 June 2020, the Group entered into a global commercialisation and license agreement with uniQure for etranacogene dezaparvovec (AMT-061), a novel gene therapy for the treatment of haemophilia B. An upfront cash payment of $450mwas made in May 2021 following the completion of regulatory approvals, which was capitalised as an intellectual property. Under the terms of the agreement, uniQure may be entitled to potential future milestone payments, subject to the achievement of certain regulatory and commercial milestones (refer to Note 13 Commitments and Contingencies). 8 The amortisation charge is recognised in general and administration expenses in the statement of comprehensive income. 9 During the year ended 30 June 2021, the Group impaired certain intellectual property assets associated with the Calimmune acquisition. Goodwill Any excess of the fair value of the purchase consideration of an acquired business over the fair value of the identifiable net assets (minus incidental expenses) is recorded as goodwill. Goodwill is allocated to each of the cash-generating units but is monitored at the segment (business unit) level. The aggregate carrying amounts of goodwill allocated to each business unit are as follows: 2021 US$m 2020 US$m CSL Behring 1,188.1 1,187.2 Closing balance of goodwill as at 30 June 1,188.1 1,187.2 Goodwill is not amortised but is measured at cost less any accumulated impairment losses. Impairment occurs when a business unit’s recoverable amount falls below the carrying value of its net assets. The results of the impairment test show that each business unit’s recoverable amount exceeds the carrying value of its net assets, inclusive of goodwill. Consequently, there is no goodwill impairment as at 30 June 2021. A change in assumptions significant enough to lead to impairment is not considered a reasonable possibility. CSL Limited Annual Report 2020/21 122 Notes to the Financial Statements