presentation of a statement of comprehensive income (loss), which has
been combined with the former statement of operations.
The new standard for financial instruments prescribes when a
financial instrument is to be recognized on the balance sheet and at
what amount. It also specifies how gains and losses on financial
instruments are to be presented. Upon adoption of this new standard,
the Company has classified its cash and cash equivalents as held-for-
trading financial assets, other receivables and loan receivable as
loans and receivables; accounts payable and accrued liabilities and
due to related party as other financial liabilities.
The adoption of these standards had no substantive impact on the
Company's interim consolidated financial statements.
3 Loan receivable
On February 28, 2005, the Company completed the sale of its wholly-
owned pharmaceutical research services business, Pharma Medica
Research Inc. (Pharma Medica). Consideration consisted of a cash
payment of $14,000 and a deferred payment of $4,000.
The deferred payment is non-interest bearing and is repayable in
annual instalments of $800 over a five year period. As the deferred
payment is non-interest bearing, it was recorded at its fair value of
$3,112 based on a discount rate of 9%. Imputed interest of $145 has
been recorded on this deferred payment during the nine months ended
September 30, 2007 ($207 during the nine months ended September 30,
2006). The first instalment of $800 related to this deferred payment
was collected on January 30, 2006. In accordance with the terms of
the deferred payment agreement, $800 of clinical services pu
|SOURCE Cipher Pharmaceuticals Inc.|
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