(d) Intangible assets capitalised
Up-front and milestone payments in respect of in-licensed technology of US$147.8 million (2006: US$80.5 million) have been capitalised under IFRS: these payments have been expensed as research and development costs as incurred under US GAAP.
(e) Effective settlement of the pre-existing relationship with New River
A non-cash charge under IFRS of US$100.0 million arose on effective settlement of the Group's pre-existing relationship with New River, in respect of the write-off of up-front and milestone payments capitalised under IFRS as intangible assets; no loss was recorded under US GAAP as these payments had been expensed as a research and development cost as incurred.
(f) Finance costs in respect of convertible bonds
Finance costs recognised in respect of the US$1,100.0 million 2.75% convertible bonds due 2014 are US$21.9 million (2006: US$nil) higher under IFRS compared to US GAAP.
Under both US GAAP and IFRS finance costs include the stated coupon on the bonds, together with amortisation of the direct costs of issue. However, under IFRS, finance costs also include amortisation of the discount arising from separately accounting for the equity conversion feature at inception; this equity conversion feature is not separately accounted for under US GAAP. Finance costs are higher under IFRS as compared to US GAAP as a result of the amortisation of this discount.
(g) Other differences
Other differences include goodwill allocated to the gain on disposal of
product rights; adjustments to goodwill relating to prior years
acquisitions; the amortisation of intangible assets capitalised under IFRS
and not US GAAP; accruals for payroll taxes on share options; and share
based payment charges.
Consolidated income statement
Year to December 31, Notes 2007 2006
|SOURCE Shire plc|
Copyright©2008 PR Newswire.
All rights reserved