iLOQ-vuosikertomus 2019

Note 12

Intangible assets

Intangible assets in 2019
EUR thousand Development expenses  Intellectual property rights Other intangible assets Work in progress Total
Acquisition cost on 1 January 2019 11,168 1,136 311 0 12,615
Additions 2,680 234 198 287 3,399
Transfers 0 0 0 0 0
Acquisition cost on 31 December 2019 13,848 1,370 509 287 16,014
Accumulated depreciation and impairment
Impairment on 1 January 2019 5,359 597 170 0 6,125
Depreciation 1,348 139 72 0 1,559
Impairment 0 0 0 0 0
Accumulated depreciation and impairment
Impairment on 31 December 2019
6,707 736 242 0 7,685
Book value on 1 January 2019 5,810 539 141 0 6,490
Book value on 31 December 2019 7,142 634 267 287 8,329
 
Intangible assets in 2018
EUR thousand Development expenses  Intellectual property rights Other intangible assets Work in progress Total
Acquisition cost on 1 January 2018 8,968 984 263 0 10,215
Additions 2,200 152 48 0 2,400
Reductions 0 0 0 0 0
Acquisition cost on 31 December 2018 11,168 1,136 311 0 12,615
Accumulated depreciation and impairment 
Impairment on 1 January 2018
4,674 478 112 0 5,263
Depreciation 685 119 58 0 862
Impairment 0 0 0 0 0
Accumulated depreciation and impairment 
Impairment on 31 December 2018
5,359 597 170 0 6,126
Carrying amount 1 January 2018 4,295 506 151 0 4,952
Book value on 31 December 2018 5,810 539 141 0 6,489

 

Group’s intangible rights consist of patents and licenses related to IT-programs and other intangible assets consist of IT-programs. At the end of the financial year 2019, the amount of work in progress mainly consist of advance payments for the development of systems.

The Group has invested in the development of new products and the further development of the features and manufacturing processes of existing products. The carrying amount of unfinished product development expenditure was EUR 2,067 thousand in 2019. In 2019, an addition of EUR 2,685 thousand of product development expenditures was recognized on the balance sheet (in 2018 EUR 2,200 thousand.

Impairment testing

The Group has carried out impairment testing for unfinished product development expenditures as at 31 December 2019 and 31 December 2018. The test is a comparison between the carrying amount of the development cost and the recoverable amount, which is defined as the present value of the future cash flows expected to be generated from the asset. Based on the impairment test, the Group’s management did not recognize any indication for a recognition of an impairment loss.