Vetoquinol Universal Registration Document 2019

Vetoquinol  Universal Registration Document 2019  Financial report   83 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6 6.5.20 Intangible assets €000 Concessions, licenses and patents Software Trademarks Other Total AT DECEMBER 31, 2017 GROSS BOOK VALUE 20,558 17,855 13,867 53,018 105,297 ACCUMULATED AMORTIZATION (14,332) (14,125) (1,213) (33,115) (62,785) NET BOOK VALUE 6,226 3,730 12,654 19,903 42,512 Acquisitions 756 2,265 - 110 3,131 Acquisitions through business combinations - - - - - Change in consolidation method - - - - - Disposals (net book value) - (18) (8) - (26) Reclassifications 1,558 (89) - - 1,468 Amortization (673) (1,021) (943) (1,781) (4,418) Deconsolidation - - - - - Exchange differences, net (52) (22) (259) 543 210 AT DECEMBER 31, 2018 GROSS BOOK VALUE 22,848 19,740 13,426 54,214 110,228 ACCUMULATED AMORTIZATION (15,032) (14,896) (1,983) (35,439) (67,350) NET BOOK VALUE 7,815 4,844 11,444 18,775 42,878 Acquisitions 3,447 2,430 - 19 5,896 Acquisitions through business combinations 97 2,787 - - 2,884 Change in consolidation method - - - - - Disposals (net book value) (3,968) (74) - - (4,041) Reclassifications (19) 1,989 (1,989) (19) Amortization (735) (1,670) (994) (1,597) (4,997) Deconsolidation - - - - - Exchange differences, net 3 87 (60) 320 350 AT DECEMBER 31, 2019 GROSS BOOK VALUE 22,387 22,991 13,406 52,459 111,244 ACCUMULATED AMORTIZATION (15,728) (14,607) (1,035) (36,924) (68,294) NET BOOK VALUE 6,659 8,384 12,371 15,536 42,950 Trademarks mainly comprise the Equistro trademark valued at €8,863,000, which has an indefinite life and, as such, is not amortized. The “Other” column mainly includes intangible assets pertaining to the following items as of December 31, 2019: • ophthalmic products purchased in 2008 from VetCom (Canada) valued at €581,000 (2018: €583,000), • an exclusive distribution contract for Zylkene products valued at €1,435,000 (2018: €1,960,000), • product lists arising from the Wockhardt animal health division acquisition valued at €807,000 (2018: €1,307,000), • product lists arising from the Farmagricola acquisition valued at €61,000 (2018: €106,000), • product lists arising from the Bioniche animal health division acquisition valued at €11,271,000 (2018: €12,352,000). 6.5.20.1.1 R&D expenses Under IAS 38, research costs are expensed as incur- red, whereas internal development costs are capitalized as intangible assets, but only if all six criteria set forth in IAS 38 are met. Owing to the risks and uncertainties associated with regulatory approvals and the research and development process, the capitalization criteria are not deemed to have been met until the Group obtains marketing authorization for the drugs. Payments made to separately acquire research and development work are recognized as other intangible