Our Future 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. Development costs incurred after regulatory approval are expensed unless it meets the criteria to be recognised as an intangible asset. The Group also gains control of intellectual property (IP) through acquisitions or license arrangements which are capitalised as intangible assets (Note 8). For the year ended 30 June 2023, research and development costs recognised in the statement of comprehensive income, were $1,235m (2022: $1,156m). Note 8: Intangible Assets Goodwill US$m Intellectual property and other intangible assets US$m Software US$m Intangible work in progress US$m Total US$m Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Cost 8,079 1,187 8,379 1,133 833 786 193 120 17,484 3,226 Accumulated amortisation – – (558) (190) (480) (398) – – (1,038) (588) Net carrying amount 8,079 1,187 7,821 943 353 388 193 120 16,446 2,638 Net carrying amount at the beginning of the year 1,187 1,188 943 936 388 469 120 78 2,638 2,671 Additions13 – – 452 126 15 7 76 64 543 197 Acquisition of CSL Vifor (Note 2) 6,892 – 6,660 – 32 – 14 – 13,598 – Transfers – – – – 19 24 (19) (24) – – Amortisation for the year – – (235) (2) (106) (95) – – (341) (97) Impairment for the year – – – (113) – – – – – (113) Currency translation differences – (1) 1 (4) 5 (17) 2 2 8 (20) Net carrying amount at the end of the year 8,079 1,187 7,821 943 353 388 193 120 16,446 2,638 13 K ey additions during the year includes development milestones paid in connection with the Group’s licensing arrangements including with Arcturus Therapeutics Holdings Inc (‘Arcturus Therapeutics’) (Note 13) and the launch of Hemgenix. CSL Limited Annual Report 2022/23 133
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