NOTES TO THE CONSOL I DATED F I NANC I A L STATEMENTS CON T I NU E D 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Trade and other payables The Group’s financial liabilities include trade and other payables. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs. Subsequently, financial liabilities are measured at amortised cost using the effective interest method. Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Gains or losses on derivative financial instruments are recognised in the profit or loss. 3. SEGMENT INFORMATION The Group has a single reportable segment and internal management reporting systems present financial information as a single segment. The segment derives its revenue and incurs expenses through the development of pharmaceutical products. Grant income arises from the Australian R&D Tax Incentive and revenue from licence agreements is derived from the United States. The Board of the Company has been identified as the chief operating decision maker. The Board assesses the financial performance and position of the group and makes strategic decisions. 4. REVENUE Disaggregation of revenue from contracts with customers The Group derives revenue from the sale and transfer of goods and services at a point in time under the following major business activities: 2022 $’000 2021 $’000 Revenue from contracts with customers Licences of intellectual property - at a point in time 14,553 – All revenue from licences of intellectual property is from the United States. Other income Interest income 391 41 Australian R&D tax incentive 864 3,197 Net foreign currency gains 1,225 398 Total other income 2,480 3,636 The net foreign currency gain of $1.2 million includes a $1.4 million gain on the milestone revenue from Acadia, offset by a loss on the translation for reporting purposes of the Group’s US dollar cash balances into Australian dollars. Neuren Pharmaceuticals Limited Annual Repor t 2022 35
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