Notes to the Interim Condensed Financial Statements (Unaudited)
(in CHF thousands, except share and per share amounts)
AC Immune SA (the “Company,”
or “AC Immune,” “ACI,” “we,” “our,” “ours,” “us”) is a
clinical stage biopharmaceutical company leveraging our two proprietary technology platforms to discover, design and develop novel,
proprietary medicines for prevention, diagnosis and treatment of neurodegenerative diseases associated with protein misfolding.
Misfolded proteins are generally recognized as the leading cause of neurodegenerative diseases, such as Alzheimer’s disease,
or AD, and Parkinson’s disease, or PD, with common mechanisms and drug targets, such as Abeta, tau and alpha-synuclein. Our
lead product candidate is crenezumab, a humanized, monoclonal, conformation-specific anti-Abeta antibody that we developed using
our proprietary SupraAntigen platform. The two Phase 3 clinical studies for crenezumab were commenced in early 2016 and in February
2017, respectively. We use our two unique proprietary platform technologies, SupraAntigen (conformation-specific biologics) and
Morphomer (conformation-specific small molecules), to discover, design and develop medicines and diagnostics to target misfolded
The Interim Condensed Financial Statements
of AC Immune SA as of and for the three and six months ended June 30, 2017 were authorized for issuance by the Company’s
Audit Committee on August 7, 2017.
|2.||Basis of preparation and changes to the Company’s
Statement of compliance
These Interim Condensed Financial Statements
as of and for the three and six months ended June 30, 2017 have been prepared in accordance with International Accounting Standard
34 (IAS 34), Interim Financial Reporting, and such financial information should be read in conjunction with the audited
financial statements in the Company’s Annual Report on Form 20-F for the year ended December 31, 2016.
Basis of measurement
The financial statements have been prepared
under the historical cost convention.
We estimate the fair value of nonvested
stock awards (restricted stock) as being equal to the market value of the common stock on the date of the award. We classify our
share-based payments as equity-classified awards. We measure equity-classified awards at their grant date fair value and do not
subsequently remeasure them. Compensation costs related to equity-classified awards are equal to the fair value of the award at
grant-date amortized over the vesting period of the award using the graded method. We reclassify that portion of vested awards
to share premium.
Critical judgments and accounting estimates
The preparation of the Company’s
interim condensed financial statements in conformity with IAS 34 requires management to make judgments, estimates and assumptions
that affect the amounts reported in the interim condensed financial statements and accompanying notes and the related application
of accounting policies as it relates to the reported amounts of assets, liabilities, income and expenses.
The areas where AC Immune has had to make
judgments, estimates and assumptions relate to (i) revenue recognition on collaboration and licensing agreements, (ii) clinical
development accruals, (iii) pensions, (iv) income taxes, and, (v) share-based compensation. 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.