Our Future Note 7: Research and Development Activities The Group undertakes research and development to support the future development of products for its patient communities, enhance existing products, and develop new therapies. All costs associated with research activities are expensed as incurred, as uncertainty exists up to the point of regulatory approval regarding whether a research and development project will be successful. Development costs incurred after regulatory approval are expensed unless the criteria for recognition as an intangible asset are met. For the year ended 30 June 2026, research and development costs recognised in the consolidated statement of comprehensive income were $1,223m (2025: $1,359m). Note 8: Intangible Assets Goodwill Intellectual property Software Intangible work in progress Total US$m US$m US$m US$m US$m Year 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Cost 6,365 8,065 8,924 8,775 1,046 1,006 131 76 16,466 17,922 Accumulated amortisation and impairment — — (4,706) (1,028) (796) (709) — — (5,502) (1,737) Net carrying amount 6,365 8,065 4,218 7,747 250 297 131 76 10,964 16,185 Net carrying amount at beginning of year 8,065 8,079 7,747 7,815 297 332 76 120 16,185 16,346 Additions — — 505 292 33 7 84 25 622 324 Transfers — — — — 29 63 (29) (70) — (7) Disposals — (14) — — (2) (1) — — (2) (15) Amortisation for the year (Note 2) — — (379) (364) (107) (104) — — (486) (468) Impairment for the year (Note 3) (1,700) — (3,663) — — — — — (5,363) — Currency translation differences — — 8 4 — — — 1 8 5 Net carrying amount at end of year 6,365 8,065 4,218 7,747 250 297 131 76 10,964 16,185 Goodwill Any excess of the fair value of the purchase consideration of an acquired business over the fair value of the identifiable net assets is recorded as goodwill. Goodwill is initially allocated to a group of CGUs but is monitored at the segment (business unit) level. 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. As at 30 June 2026, goodwill allocated to the CSL Vifor CGU was fully impaired (refer Note 3). At 30 June 2026, management concluded that the recoverable amounts of the remaining CGUs exceeded their carrying values, including allocated goodwill. The carrying values of these remaining CGUs are not sensitive to changes in assumptions that management consider reasonably possible. The aggregate carrying amounts of goodwill by segment are as follows: 2026 2025 US$m US$m CSL Behring 5,454 5,454 CSL Vifor — 1,700 CSL Seqirus 911 911 Closing balance of goodwill as at 30 June 6,365 8,065 109 Notes to the Financial Statements 109 CSL Limited Annual Report 2025/26
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