|(2)||The address for Varuma AG is Aeschenvorstadt 55, CH-4051 Basel, Switzerland. Rudolf Maag controls the voting and investment
decisions of Varuma AG.|
Operating lease liabilities
We have been a tenant at our current location
in the EPFL Innovation Park in Lausanne since shortly after our inception in 2003. We have entered into long-term rental lease
agreements with respect to these facilities. However, our lease agreements are structured such that we can exit these lease agreements
without penalty provided we give the owner of our premises sufficient notice. As of 31 December 2016, total minimum liability
for the remaining term was CHF 255 thousand.
Provisions are recognized when the Company
has a present legal or constructive obligation as a result of past events where it is more likely than not that an outflow of resources
will be required to settle the obligation, and a reliable estimate of the amount can be made.
Critical judgments and accounting estimates
The preparation of financial statements
in conformity with Swiss Code of Obligations requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses.
where AC Immune has had to make judgments, estimates and assumptions relate to (i) revenue recognition on collaboration and licensing
agreements and (ii) clinical development accruals. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised
and in any future periods affected.