Our Future 6 D uring the year ended 30 June 2022, the Group impaired certain intellectual property assets associated with the Calimmune acquisition ($112.6m). The net impact to the profit or loss from all Calimmune related adjustments was a loss of $24.8m (refer to Note 1 for further details). Note 7: Research and Development The Group conducts research and development activities to support future development of products to serve our patient communities, to enhance our existing products and to develop new therapies. All costs associated with our research and development activities are expensed as incurred as uncertainty exists up until the point of regulatory approval as to whether a research and development project will be successful. At the point of approval, the total cost of development has largely been incurred. Development costs incurred after regulatory approval are expensed unless it meets the criteria to be recognised as intangible assets. The Group also gains control of Intellectual Property (IP) through acquisitions or licence arrangements. In certain circumstances the acquired IP will be capitalised, dependant on the phase of development. For the year ended 30 June 2022, the research and development costs, net of recoveries, were $1,156.2m (2021: $1,001.4m). Further information about the Group’s research and development activities can be found on the CSL website. Note 8: Intangible Assets Goodwill US$m Intellectual Property US$m Software US$m Intangible work in progress US$m Total US$m Year 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Cost 1,187.3 1,188.1 1,133.0 1,131.1 785.6 789.8 119.9 77.7 3,225.8 3,186.7 Accumulated amortisation – – (189.9) (195.6) (397.8) (321.4) – – (587.7) (517.0) Net carrying amount 1,187.3 1,188.1 943.1 935.5 387.8 468.4 119.9 77.7 2,638.1 2,669.7 Movement Net carrying amount at the beginning 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 Additions – – 126.0 450.0 6.6 8.1 64.8 31.3 197.4 489.4 Transfers from intangible capital work in progress – – – – 24.1 84.1 (24.1) (84.1) – – Transfers (to)/from property, plant and equipment – – – – – – – (0.9) – (0.9) Reclassification due to SaaS accounting policy change (see annual financial report at 30 June 2021) – – – (5.1) – (10.3) – (1.2) – (16.6) Amortisation for the year – – (2.3) (0.9) (94.5) (95.0) – – (96.8) (95.9) Impairment for the year6 – – (112.6) (19.9) – – – – (112.6) (19.9) Currency translation differences (0.8) 0.9 (3.5) 1.9 (16.8) 20.6 1.5 (0.8) (19.6) 22.6 Net carrying amount at the end of the year 1,187.3 1,188.1 943.1 935.5 387.8 468.4 119.9 77.7 2,638.1 2,669.7 CSL Limited Annual Report 2021/22 113
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