liability, (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 and in any future periods affected.
As disclosed in Note 14, the Company has
tax losses that can generally be carried forward for a period of 7 years from the period the loss was incurred. These tax losses
represent potential value to the Company to the extent that the Company is able to create taxable profits before the expiry period
of these tax losses. The Company has not recorded any deferred tax assets in relation to these tax losses.
The Company has one segment. The Company
currently focuses all of its resources on discovering and developing therapeutic and diagnostic products targeting misfolded proteins.
The Company is managed and operated as
one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business.
Accordingly, the Company views its business and manages its operations as one reportable segment. Non-current assets are located
in and revenue is attributable to the Company’s country of domicile, Switzerland.
Accounting pronouncements – not yet adopted
The following pronouncements from the IASB
will become effective for future financial reporting periods and have not yet been adopted by AC Immune.
IFRS 16 Leases provides
a new model for lessee accounting in which all leases, other than short-term and low-value leases, will be accounted for by the
recognition on the balance sheet of a right-of-use asset and a lease liability, and the subsequent amortization of the right-of-use
asset over the lease term. IFRS 16 will be effective for annual periods beginning on or after January 1, 2019 with early adoption
permitted. AC Immune has completed its assessment of the impact of this standard on its financial statements and we estimate an
increase of approximately CHF 2.2 million for the right-of-use assets and lease liabilities associated with our operating leases
upon adoption. The Company will adopt this standard as of the effective date using the Modified Retrospective approach with there
being no cumulative effect adjustment to the opening balance of accumulated losses. We believe the adoption of this standard will
not have a significant impact on our statements of loss and comprehensive loss, changes in equity, and cash flows.
There are no other standards that are not
yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and
on foreseeable future transactions.
Accounting pronouncements – recently adopted
IFRS 15 Revenue from Contracts with
In May 2014, the International Accounting
Standards Board (IASB) issued IFRS 15 – Revenue from Contracts with Customers which amends the guidance
for accounting for revenues from contracts with customers. This IFRS replaces all current revenue standards in IFRS including IAS
11 – Construction Contracts, IAS 18 – Revenue and various interpretations. The Company
adopted this new standard on January 1, 2018, and would have recognized the cumulative effect of initially applying the new revenue
standard as an adjustment to the opening balance of accumulated losses; however, the Company did not deem any adjustments required
in the transition to the new standard. The comparative information has not been restated and continues to be reported under the
accounting standards in effect for those periods.
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments supersedes
IAS 39 Financial Instruments: Recognition and Measurement and was adopted by the Company on January 1, 2018.
IFRS 9 covers classification and measurement of financial assets and financial liabilities, impairment of financial assets and
hedge accounting. The Company noted no impact to its financial statements upon adoption of this standard.