|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ELN 6-K filed Mar 31, 2008. j Intangible
assets
On 31 December 2006, the parent company transferred all of
its intangible assets to a subsidiary company. The transfer
included the Verelan intangible asset, which had a
carrying value of $33.2 million at 31 December 2006.
The amortisation charge for Verelan of $15.7 million
in 2006 was recognised in cost of sales in the income statement.
134 Elan
Corporation, plc 2007 Annual Report
Table of Contents
Notes to the
Consolidated Financial Statements
This excerpt taken from the ELN 6-K filed Mar 31, 2006. a Intangible
assets
The carrying value of our intangible assets is higher under IFRS
than under U.S. GAAP because of differences in our
historical Irish GAAP accounting for business combinations which
have carried into our IFRS financial statements as part of the
transitional arrangements. This in turn gives rise to a higher
amortisation charge under IFRS than under U.S. GAAP.
Additionally, higher carrying values under IFRS will result in
higher intangible impairment charges if the fair value of the
related intangibles declines post-acquisition.
The principal reason for a higher carrying value of intangibles
under IFRS is that under U.S. GAAP, the fair value of
acquired IPR&D is expensed upon acquisition, whereas under
Irish GAAP as carried into IFRS these amounts are capitalised as
acquired IPR&D.
Additionally, under U.S. GAAP, our acquisition of Dura was
accounted for under the
pooling-of-interests
method, whereas under Irish GAAP and now IFRS this transaction
was accounted for using the purchase method. As a result, under
U.S. GAAP, the assets and liabilities of Dura were recorded
at their historical carrying amounts and no goodwill arose from
the merger of Dura and Elan, whereas under IFRS the assets and
liabilities of Dura were recorded based on their fair values at
the date of acquisition, and the excess of the purchase price
over the fair value of assets acquired was allocated to goodwill.
Also, a number of differences arise in the manner in which
goodwill was previously written off when businesses were sold
under Irish GAAP and U.S. GAAP. As we did not restate our
historical business combinations in accordance with IFRS 3,
“Business Combinations,” as permitted by IFRS 1,
these differences remain in effect between U.S. GAAP and
IFRS.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. Intangible assets The carrying value of our intangible assets is higher under Irish GAAP than under U.S. GAAP because of differences in the accounting for acquisitions. This in turn gives rise to a higher amortisation charge under Irish GAAP than under U.S. GAAP. Additionally, higher carrying values under Irish GAAP will result in higher intangible impairment charges where the fair value of the related intangibles declines post-acquisition. The principal reason for a higher carrying value of intangibles under Irish GAAP is that under U.S. GAAP, the fair value of acquired in-process research & development is expensed upon acquisition, whereas under Irish GAAP these amounts are capitalised as either goodwill or acquired IP. Additionally, under U.S. GAAP, Elan’s acquisition of Dura was accounted for under the pooling of interests method of accounting, whereas under Irish GAAP this transaction was accounted for using acquisition accounting. As a consequence, under U.S GAAP, the assets and liabilities of Dura were recorded at their historical carrying amounts and no goodwill arose from the merger of Dura and Elan, whereas under Irish GAAP the assets and liabilities of Dura (including goodwill) were recorded based on their fair values at the date of acquisition. The basis for allocating goodwill on the disposal of a business differs under both GAAPs. Under Irish GAAP, the goodwill arising on acquisition is written off on disposal. Under U.S. GAAP, the goodwill written off on disposal is calculated proportionately, based on the relative fair value of the business sold to the fair value of the related reporting unit. | EXCERPTS ON THIS PAGE:
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
