| Summary of Significant Accounting Policies | 2 Summary of Significant Accounting Policies 2.1 BASIS OF AND CHANGES IN ACCOUNTING STANDARDS 2.1.1 BASIS OF APPLICATION These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (“IFRS”), taking into account the recommendations of the International Financial Reporting Standards Interpretations Committee (IFRS IC). We have applied all standards and interpretations that were in f o The consolidated financial statements as of December 31, 2019 and 2018, as well as each of the years in the three-year period ended December 31, 2019, pertain to MorphoSys AG and its subsidiaries (collectively, the “MorphoSys Group” or the “Group”). In preparing the consolidated financial statements in accordance with IFRS, the Management Board is required to make certain estimates and assumptions, which have an effect on the amounts recognized in the consolidated financial statements and the accompanying Notes. The actual results may differ from these estimates. The estimates and underlying assumptions are subject to continuous review. Any changes in estimates are recognized in the period in which the changes are made and in all relevant future periods. The annual financial statements of the foreign Group companies are prepared in their respective functional currencies and converted into euro s The annual financial statements are based on historical cost, with the exception of the following assets and liabilities, which are recorded at their respective fair values: derivative financial instruments and financial assets at fair value. All figures in this report have been rounded to the nearest euro, thousand euros or million euros. Unless stated otherwise, the accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. 2.1.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting principles applied generally correspond to the policies used in the prior year. NEW OR REVISED STANDARDS AND INTERPRETATIONS ADOPTED FOR THE FIRST TIME IN THE FINANCIAL YEAR Standard / Interpretation Mandatory Adopted by Impact on IFRS 9 (A) Prepayment Features with Negative Compensation 01/01/2019 yes none IFRS 16 Leases 01/01/2019 yes yes IAS 19 (A) Plan Amendment, Curtailment or Settlement 01/01/2019 yes none IAS 28 (A) Long-term Interests in Associates and Joint Ventures 01/01/2019 yes none IFRIC 23 Uncertainty over Income Tax Treatments 01/01/2019 yes yes Annual Improvements to IFRS Standards 2015 – 2017 Cycle 01/01/2019 yes none (A) Amendments IFRS 16 – LEASES The Group has adopted the new standard on leases, IFRS 16, since January 1, 2019. In the 2018 financial year, leases were accounted for in accordance with IAS 17 and the associated interpretations (IFRIC 4, SIC 15, and SIC 27). Leases recognized as operating leases under IAS 17 until December 31, 2018 were recognized as lease liabilities in the Group upon the first-time adoption of IFRS 16. In accordance with IAS 17, payments made under operating leases less incentives were recognized in the statement of profit or loss on a straight-line basis over the term of the lease. IFRS 16 was applied for the first time as of January 1, 2019, using the modified retrospective method. The Group has not retrospectively adjusted comparative amounts for the 2018 financial year and, in accordance with IFRS 16.C8 (b) (ii), recognized the right-of-use low-value The Group assesses whether an agreement constitutes or contains a lease at the time of the agreement’s inception. The following categories of leases have been identified where the transition to IFRS 16 as of January 1, 2019 resulted in the recognition of leases previously recognized as operating leases as leases under the new standard: buildings, vehicles and technical equipment. For agreements concluded after January 1, 2019, the assessment of whether an agreement contains or is a lease is made in accordance with IFRS 16. This is the case if the agreement entitles the holder to control the use of an identified asset for a specified period of time in return for the payment of a fee. The lease liability was measured at its present value as of January 1, 2019. To determine the present value, the remaining lease payments were discounted to January 1, 2019 using the lessee’s incremental borrowing rate. The weighted-average interest rate was 2.17% and was based primarily on hypothetical bank loans granted for an asset with a value and term comparable to the right-of-use Based on the operating lease obligations as of December 31, 2018, the following reconciliation to the opening balance sheet value of the lease obligations resulted as of January 1, 2019. in 000’ € Lease Liabilities Operating Lease Commitments disclosed as of December 31, 2018 22,530 Commitments for Not Identifiable Assets (90 ) Leases of Low Value Assets, Expensed on a Straight-Line Basis (56 ) Other 28 Lease Liabilities, undiscounted, as of January 1, 2019 22,412 Adjustments as a Result of Different Assessment of Extension Options 26,855 Gross Lease Liabilities as of January 1, 2019 49,267 Discounting (8,484 ) Lease Liabilities as of January 1, 2019 40,783 thereof short-term 2,026 thereof long-term 38,757 For one building, extension options (twice five years after a minimum lease period of ten years) were included in the determination of the lease liability as of January 1, 2019, as it is sufficiently certain that these options will be exercised. This assessment is based on the fact that extensive conversion work has been carried out on this building to meet the Group’s requirements. Consequently, there is only a limited number of alternatives to the existing building. As a result of the first-time adoption of IFRS 16 as of January 1, 2019, right-of-use non-current right-of-use non-current right-of-use , 2019 right-of-use IFRS 16 has a significant effect on the components of the consolidated financial statements and the presentation of the net assets, financial position and results of operations. With the increase in total assets, the equity ratio has declined. The first-time adoption of IFRS 16 had no effect on the amount of equity as of January 1, 2019 and no material impact on the Group EBIT. IFRIC 23 – UNCERTAINTY OVER INCOME TAX TREATMENT The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses the following: • Whether an entity considers uncertain tax treatments separately • The assumptions an entity makes about the examination of tax treatments by taxation authorities • How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates • How an entity considers changes in facts and circumstances The Group determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and uses the approach that better predicts the resolution of the uncertainty. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multination environment, it assessed whether the interpretation had an impact on the consolidated financial statements. Upon adoption of the interpretation, the Group considered whether it has any uncertain tax positions, particularly those relating to transfer pricing. NEW OR REVISED STANDARDS AND INTERPRETATIONS NOT YET MANDATORILY APPLICABLE The following new or revised standards and interpretations that were not yet mandatory in the reporting period or have not yet been adopted by the European Union, have not been applied prematurely. The effects on the consolidated financial statements of standards marked with “yes” are considered probable and are currently being examined by the Group. Only significant effects are described in more detail. The effects on the consolidated financial statements of the extensions to IAS 1 and IAS 8 are not considered material and, therefore, not explained separately. Standards with the comment “none” are not expected to have a material impact on the consolidated financial statements Standard / Interpretation Mandatory Adopted by the Possible Impact IFRS 3 (A) Business Combinations 01/01/2020 no none IFRS 9, IAS 39 a Interest Rate Benchmark Reform 01/01/2020 yes none IFRS 17 Insurance Contracts 01/01/2021 no none IAS 1 a Definition of Material 01/01/2020 yes yes Amendments to References to the Conceptual Framework in IFRS 01/01/2020 yes none (A) Amendments 2.2 CONSOLIDATION PRINCIPLES Intercompany balances and transactions and any unrealized gains arising from intercompany transactions are eliminated when preparing consolidated financial statements pursuant to IFRS 10 . For all contracts and business transactions between Group entities, the arm’s length principle was applied. 2.2.1 CONSOLIDATED COMPANIES AND SCOPE OF CONSOLIDATION MorphoSys AG, as the ultimate parent company, is located in Planegg, near Munich. MorphoSys AG has two wholly owned subsidiaries (collectively referred to as the “MorphoSys Group” or the “Group”): MorphoSys US Inc. (Boston, Massachusetts, USA) and Lanthio Pharma B.V. (Groningen, The Netherlands). Additionally, MorphoSys AG’s investment in Lanthio Pharma B.V. indirectly gives it 100% ownership in LanthioPep B.V. (Groningen, The Netherlands). The consolidated financial statements for the year ended December 31, 2019 were prepared and approved by the Management Board on March 11, 2020 by means of a resolution. The Management Board members are Dr. Jean-Paul Kress (Chief Executive Officer), Jens Holstein (Chief Financial Officer) and Dr. Malte Peters (Chief Development Officer). Dr. Markus Enzelberger resigned from the management board as of February 29, 2020. On March 11, 2020, the Management Board authorized the consolidated financial statements for issue and passed it through to the Supervisory Board for review and authorization. 2.2.2 CONSOLIDATION METHODS The following Group subsidiaries are included in the scope of consolidation, as shown in the table below. Company Purchase of Included in Lanthio Pharma B.V. May 2015 05/07/2015 LanthioPep B.V. May 2015 05/07/2015 MorphoSys US Inc. July 2018 07/02/2018 These subsidiaries are fully consolidated because they are either directly or indirectly wholly The Group does not have any entities consolidated as joint ventures using the equity method as defined by IFRS 11 “Joint Arrangements,” nor does it exercise a controlling influence as defined by IAS 28 “Investments in Associates and Joint Ventures.” Assets and liabilities of fully consolidated domestic and international entities are recognized using Group-wide uniform accounting and valuation methods. The consolidation methods applied have not changed from the previous year. Receivables, liabilities, expenses and income among consolidated entities are eliminated in the consolidated financial statements. 2.2.3 PRINCIPLES OF FOREIGN CURRENCY TRANSLATION IAS 21 “The Effects of Changes in Foreign Exchange Rates” governs the accounting Comprehensive 2.3 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 2.3.1 CREDIT RISK AND LIQUIDITY RISK Financial instruments in which the Group may have a concentration of credit and liquidity risk are mainly cash and cash equivalents, financial assets at fair value, with changes recognized in profit or l non-performance. The changes in impairment losses for credit risks required to be recognized under IFRS 9 (see Note 2.4) in the statement of profit or loss for the financial years 2019 and 2018 under the item impairment losses on financial assets were as follows. Negative values represent additions and positive values represent reversals of risk provisions. There were no impairments in the 2019 financial year. The decline in this risk provision compared with January 1, 2019 resulted from lower premiums for credit default swaps of counterparties, which are used for the determination of any impairment losses. General Impairment Model Simplified Impairment Model Total in 000’ € Stage 1 Stage 2 Stage 3 Stage 2 Stage 3 Balance as of January 1, 2018 (136 ) 0 0 (112 ) 0 (248 ) Unused Amounts Reversed 0 0 0 112 0 112 Increase in Impairment Losses for Credit Risks recognized in Profit or Loss during the Year (570 ) (465 ) 0 (90 ) 0 (1,125 ) Change between Impairment Stages 41 (41 ) 0 0 0 0 Amounts written off during the Year as uncollectible 0 0 0 0 0 0 Balance as of December 31, 2018 (665 ) (506 ) 0 (90 ) 0 (1,261 ) Balance as of January 1, 2019 (665 ) (506 ) 0 (90 ) 0 (1,261 ) Unused Amounts Reversed 445 427 0 90 0 962 Increase in Impairment Losses for Credit Risks recognized in Profit or Loss during the Year 0 0 0 (80 ) 0 (80 ) Change between Impairment Stages (79 ) 79 0 0 0 0 Amounts written off during the Year as uncollectible 0 0 0 0 0 0 Balance as of December 31, 2019 (299 ) 0 0 (80 ) 0 (379 ) The Group recognizes impairment losses for default risks for financial assets as follows: Balance Sheet Item as of December 31, Internal Basis for Recognition of Expected Credit Loss Provision Gross Carrying Impairment Carrying Average Cash and Cash Equivalents low Expected Twelve-Month Loss 44,314 0 44,314 0.0 % Other Financial Assets at Amortized Cost low Expected Twelve-Month Loss 293,958 (299 ) 293,659 0.1 % Accounts Receivable low Lifetime Expected Credit Losses 15,162 (80 ) 15,082 0.5 % Balance Sheet Item as of December 31, Internal Basis for Recognition of Expected Credit Loss Provision Gross Carrying Impairment Carrying Average Cash and Cash Equivalents low Expected Twelve-Month Loss 43,165 (16 ) 43,149 0.0 % Other Financial Assets at Amortized Cost low Expected Twelve-Month Loss 275,805 (649 ) 275,156 0.2 % medium Lifetime Expected Credit Losses 93,102 (506 ) 92,596 0.5 % Accounts Receivable low Lifetime Expected Credit Losses 17,823 (90 ) 17,733 0.5 % The Group is also exposed to credit risk from debt instruments that are measured at fair value One of the Group’s policies requires that all customers who wish to transact business on credit undergo a credit assessment based on external ratings. Nevertheless, the Group’s revenue and accounts receivable are still subject to credit risk from customer concentration. The Group’s most significant single customer accounted for € 8.0 million of accounts receivables as of December 31, 2019 (December 31, 2018: € 5.9 million) or 53% of the Group’s total accounts receivable at the end of 2019. The Group’s top three single customers individually accounted for 45%, 31% and 13% of the total revenue in 2019. On December 31, 2018, one customer had accounted for 33% of the Group’s accounts receivable. In 2018, the top three customers individually accounted for 65%, 25% and 5% of the Group’s revenue. The top three customers had individually accounted for 55%, 25% and 10% of the Group’s revenue in 2017. The carrying amounts of financial assets represent the maximum credit risk. The table below shows the accounts receivables by region as of the reporting date. in € 12/31/2019 12/31/2018 Europe and Asia 6,984,944 13,176,523 USA and Canada 8,176,758 4,646,410 Other 0 0 Impairment (80,000 ) (90,000 ) Total 15,081,702 17,732,933 The following table shows the aging of accounts r e 12/31/2019 12/31/2019 12/31/2019 12/31/2019 in €; due since 0 - 30 - 60 days 60 + days Total Accounts Receivable 15,161,702 0 0 15,161,702 Impairment (80,000 ) 0 0 (80,000 ) Accounts Receivable, Net of Allowance for Impairment 15,081,702 0 0 15,081,702 12/31/2018 12/31/2018 12/31/2018 12/31/2018 in €; due since 0 - 30 - 60 days 60 + days Total Accounts Receivable 17,822,933 0 0 17,822,933 Impairment (90,000 ) 0 0 (90,000 ) Accounts Receivable, Net of Allowance for Impairment 17,732,933 0 0 17,732,933 On December 31, 2019 and December 31, 2018, the Group’s exposure to credit risk from derivative financial instruments was assessed as low. The maximum credit risk (equal to the carrying amount) for rent deposits and other deposits on the reporting date amounted to € 1.0 million (December 31, 2018: € 0.7 million). The following table shows the maturities of accounts payable as of the reporting date. 12/31/2019 12/31/2019 12/31/2019 in €; due in Between One and More than 12 Total Trade Accounts Payable 10,655,014 0 10,655,014 Convertible Bonds due to Related Parties 12,324 0 12,324 12/31/2018 12/31/2018 12/31/2018 in €; due in Between One and More than 12 Total Trade Accounts Payable 7,215,127 0 7,215,127 Convertible Bonds due to Related Parties 71,517 0 71,517 Financial assets and financial liabilities were not netted as of December 31, 2019. Currently, there is no legal right to offset amounts recognized, to settle on a net basis, or to realize an asset and settle a liability simultaneously. There were no financial instruments pledged as collateral as of December 31, 2019. There was no netting potential as of December 31, 2019 under the scope of the existing netting agreements. 2.3.2 MARKET RISK Market risk represents the risk that changes CURRENCY RISK The consolidated financial statements are prepared in euros. Whereas MorphoSys’s expenses are incurred largely in euros, a portion of the revenue is dependent on the prevailing exchange rate of the US dollar. Throughout the year, the Group monitors the necessity to hedge foreign exchange rates to minimize currency risk and addresses this risk by using derivative financial instruments. Under the Group’s hedging policy, highly probable cash flows and definite foreign currency receivables collectible within a twelve-month period are tested to determine if they should be hedged. MorphoSys had begun using foreign currency options and forwards to hedge its foreign exchange risk against US dollar receivables in 2003. For derivatives with a positive fair value, unrealized gains are recorded in other receivables and for derivatives with a negative fair value, unrealized losses are recorded in other liabilities. As of December 31, 2019, there was one unsettled forward rate agreement with a term of one month (December 31, 2018: nine unsettled forward rate agreements; December 31, 2017: twelve unsettled forward rate agreements). The unrealized gross gain from this agreement amounted to € 0.4 million as of December 31, 2019, and was recorded in the finance result (December 31, 2018: € 0.1 million unrealized gross gain; December 31, 2017: € 0.3 million unrealized gross loss). The table below shows the Group’s exposure to foreign currency risk based on the items’ carrying amounts. as of December 31, 2019; in € Euro US$ Other Impairment Total Cash and Cash Equivalents 26,400,595 17,913,455 0 0 44,314,050 Financial Assets at Fair Value through Profit or Loss 4,233,141 16,221,808 0 0 20,454,949 Other Financial Assets at Amortized Cost 251,199,363 41,756,008 0 (298,000 ) 292,657,371 Accounts Receivable 14,183,334 978,368 0 (80,000 ) 15,081,702 Restricted Cash (included in Other Current Assets) 713,232 289,537 0 (1,000 ) 1,001,769 Accounts Payable and Accruals (52,126,110 ) (4,910,130 ) (5,662 ) 0 (57,041,902 ) Total 244,603,555 72,249,046 (5,662 ) (379,000 ) 316,467,939 as of December 31, 2018; in € Euro US$ Other Impairment Total Cash and Cash Equivalents 38,732,565 6,743,271 0 (16,000 ) 45,459,836 Financial Assets at Fair Value through Profit or Loss 34,971,116 9,610,148 0 0 44,581,264 Other Financial Assets at Amortized Cost 365,823,783 0 0 (1,152,000 ) 364,671,783 Accounts Receivable 17,570,035 252,898 0 (90,000 ) 17,732,933 Restricted Cash (included in Other Current Assets) 772,425 12,901 0 (3,000 ) 782,326 Accounts Payable and Accruals (43,638,268 ) (1,122,347 ) 0 0 (44,760,615 ) Gesamt 414,231,656 15,496,871 0 (1,261,000 ) 428,467,527 Different foreign exchange rates and their impact on assets and liabilities were simulated in a sensitivity analysis to determine the effects on profit or loss. A 10% increase in the euro versus the US dollar as of December 31, 2019, would have increased the consolidated net loss by € 6.7 million. A 10% decline in the euro versus the US dollar would have reduced the consolidated net loss by € 7.9 million. A 10% increase in the euro versus the US dollar as of December 31, 2018, would have increased the consolidated net loss by € 1.4 million. A 10% decline in the euro versus the US dollar would have reduced the consolidated net loss by € 1.7 million. A 10% increase in the euro versus the US dollar as of December 31, 2017, would have increased the consolidated net loss by € 0.2 million. A 10% decline in the euro versus the US dollar would have reduced the consolidated net loss by € 0.2 million. INTEREST RATE RISK The Group’s risk exposure to changes in interest rates mainly relates to fixed-term deposits and corporate bonds. Changes in the general level of interest rates may lead to an increase or decrease in the fair value of these securities. The Group’s investment focus places the safety of an investment ahead of its return. Interest rate risks are limited because all securities can be liquidated within a maximum of two years and due to the partially fixed interest rates during the term. Different interest rates and their effects on existing investments with variable interest rates were simulated in a detailed sensitivity analysis in order to determine the effects on profit or loss. An increase of the variable interest rate by 0.5% would have reduced the consolidated net loss by € 0.3 million as of December 31, 2019 (December 31, 2018: € 0.4 million; December 31, 2017: € 0.6 million). A decrease of the variable interest rate by 0.5% would have increased the consolidated net loss by € 0.3 million as of December 31, 2019 (December 31, 2018: € 0.1 million; December 31, 2017: € 0.4 million). Changes in the interest rate had no material impact on equity as of December 31, 2019 or December 31, 2018. The Group is not subject to significant interest rate risks from the liabilities currently reported on the balance sheet. 2.3.3 FAIR VALUE HIERARCHY AND MEASUREMENT METHODS The IFRS 13 “Fair Value Measurement” guidelines must always be applied when measurement at fair value is required or permitted or disclosures regarding measurement at fair value are required based on another IAS/IFRS guideline. The fair value is the price that would be achieved for the sale of an asset in an arm’s length transaction between independent market participants or the price to be paid for the transfer of a liability (disposal or exit price). Accordingly, the fair value of a liability reflects the default risk (i.e., own credit risk). Measurement at fair value requires that the sale of the asset or the transfer of the liability takes place on the principal market or, if no such principal market is available, on the most advantageous market. The principal market is the market a company has access to that has the highest volume and level of activity. Fair value is measured by using the same assumptions and taking into account the same characteristics of the asset or liability as would an independent market participant. Fair value is a market-based, not an entity-specific measurement. The fair value of non-financial MorphoSys applies the following hierarchy in determining and disclosing the fair value of financial instruments: Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities to which the Company has access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: Inputs for asset or liability that are not based on observable market data (that is, unobservable inputs). The carrying amounts of financial assets and liabilities, such as other financial assets at amortized cost, as well as accounts receivable and accounts payable, approximate their fair value because of their short-term maturities. HIERARCHY LEVEL 1 The fair value of financial instruments traded in active markets is based on the quoted market prices on the reporting date. A market is considered active if quoted prices are available from an exchange, dealer, broker, industry group, pricing service or regulatory body that is easily and regularly accessible and prices reflect current and regularly occurring market transactions at arm’s length conditions. For assets held by the Group, the appropriate quoted market price is the buyer’s bid price. These instruments fall under Hierarchy Level 1 (see Note 5.2 and 5.9). HIERARCHY LEVELS 2 AND 3 The fair value of financial instruments not traded in active markets can be determined using valuation methods. In this case, fair value is estimated using the results of a valuation method that makes maximum use of market data and relies as little as possible on entity-specific inputs. If all significant inputs required for measuring fair value by using valuation methods are observable, the instrument is allocated to Hierarchy Level 2. If significant inputs are not based on observable market data, the instrument is allocated to Hierarchy Level 3. Hierarchy Level 2 contains forward exchange contracts to hedge exchange rate fluctuations, term deposits and restricted cash. Future cash flows for these forward exchange contracts are determined based on forward exchange rate curves. The fair value of these instruments corresponds to their discounted cash flows. The fair value of the term deposits and restricted cash is determined by discounting the expected cash flows at market interest rates. Financial assets belonging to Hierarchy Level 3 are shown in Note 5.9. No financial liabilities There were no transfers from one fair value hierarchy level to another in 2019 or 2018. The table below shows the fair values of fi n December 31, 2019; in 000’ € Note Hierarchy Level Not classified Financial Assets Financial Assets Cash and Cash Equivalents 5.1 * 44,314 0 Financial Assets at Fair Value through Profit or Loss 5.2 1 0 20,455 Other Financial Assets at Amortized Cost 5.2 * 207,735 0 Accounts Receivable 5.3 * 15,082 0 Other Receivables thereof Financial Assets * 1,217 thereof Forward Exchange Contracts used for Hedging 5.4 2 0 396 Current Assets 268,348 20,851 Other Financial Assets at Amortized Cost, Net of Current Portion 5.2 2 84,922 0 Shares at Fair Value through Other Comprehensive Income 5.9 thereof Shares at Level 1 1 0 0 thereof Shares at Level 3 3 0 0 Prepaid Expenses and Other Assets, Net of Current Portion 5.10 thereof Non-Financial n/a 147 thereof Restricted Cash 2 989 0 Non-current 147 85,911 0 Total 147 354,259 20,851 Accounts Payable and Accruals 6.1 * 0 0 Current Portion of Lease Liabilities 5.7 n/a (2,515 ) Convertible Bonds – Liability Component 2 0 0 Current Liabilities 0 0 Lease Liabilities, Net of Current Portion 5.7 n/a (40,042 ) Non-current 0 0 Total 0 0 * Declaration waived in line with IFRS 7.29 (a). For these instruments the carrying amount is a reasonable approximation of fair value. ** Declaration waived in line with IFRS 7.29 (d) as disclosure is not required for lease liabilities. Financial Assets at Fair Value (Through Other Financial Liabilities Financial Liabilities at Total Carrying Amount Fair value 0 0 0 44,314 * 0 0 0 20,455 20,455 0 0 0 207,735 * 0 0 0 15,082 * 1,613 1,217 * 0 0 0 396 396 0 0 0 289,199 0 0 0 84,922 84,922 14,077 13,690 0 0 13,690 13,690 387 0 0 387 387 1,136 147 n/a 0 0 0 989 989 14,077 0 0 100,135 14,077 0 0 389,334 0 (57,042 ) 0 (57,042 ) * (2,515 ) ** 0 (12 ) 0 (12 ) (12 ) 0 (57,054 ) 0 (59,569 ) (40,042 ) ** 0 0 0 (40,042 ) 0 (57,054 ) 0 (99,611 ) December 31, 2018; in 000’ € Note Hierarchy Level Not classified Financial Assets Financial Assets Cash and Cash Equivalents 5.1 * 45,460 0 Financial Assets at Fair Value through Profit or Loss 5.2 1 0 44,581 Other Financial Assets at Amortized Cost 5.2 * 268,923 0 Accounts Receivable 5.3 * 17,733 0 Other Receivables thereof Financial Assets * 81 thereof Forward Exchange Contracts used for Hedging 5.4 2 0 66 Current Assets 332,197 44,647 Other Financial Assets at Amortized Cost, Net of Current Portion 5.2 2 95,749 0 Shares at Fair Value through Other Comprehensive Income 5.9 3 0 0 Prepaid Expenses and Other Assets, Net of Current Portion 5.10 thereof Non-Financial n/a 2,271 thereof Restricted Cash 2 711 0 Non-current 2,271 96,460 0 Total 2,271 428,657 44,647 Accounts Payable and Accruals 6.1 * 0 0 Current Liabilities 0 0 Convertible Bonds – Liability Component 2 0 0 Non-current 0 0 Total 0 0 * Declaration waived in l Financial Assets at Fair Finan c Financial Liabilities Total Carrying Amount Fair value 0 0 0 45,460 * 0 0 0 44,581 44,581 0 0 0 268,923 * 0 0 0 17,733 * 147 81 * 0 0 0 66 66 0 0 0 376,844 0 0 0 95,749 95,749 232 0 0 232 232 2,982 2,271 n/a 0 0 0 711 701 232 0 0 98,963 232 0 0 475,807 0 (44,761 ) 0 (44,761 ) * 0 (44,761 ) 0 (44,761 ) 0 (72 ) 0 (72 ) (72 ) 0 (72 ) 0 (72 ) 0 (44,833 ) 0 (44,833 ) 2.4 IMPAIRMENT 2.4.1 FINANCIAL INSTRUMENTS The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost (term deposits with fixed and variable interest rates and corporate bonds). The impairment method applied depends on whether there has been a significant increase in credit risk. If at the reporting date, the credit risk of a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to twelve-month expected credit losses (Level 1). In case the credit risk of a financial instrument has increased significantly since initial recognition, the Group measures impairment for that financial instrument at an amount equal to the lifetime expected credit losses. The Group currently classifies an increase in credit risk on debt instruments as significant when the premium on a counterparty credit default swap has increased by 100 basis points since the initial recognition of the instrument (Level 2). If there is an objective indication of impairment, the interest received must also be adjusted so that as of that date the interest is accrued on the basis of the net carrying amount (carrying amount less risk provisions) of the financial instrument (Level 3). Objective evidence of a financial instrument’s impairment may arise from material financial difficulties of the issuer or the borrower, a breach of contract such as a default or delay in interest or principal payments, an incr e Financial instruments are derecognized when it can be reasonably expected that they will not be recovered and there is objective evidence of this. Impairment of financial instruments is recognized under impairment losses on financial assets. 2.4.2 RECEIVABLES In the case of accounts receivable, the Group applies the simplified approach under IFRS 9, which requires expected lifetime losses to be recognized from the initial recognition of the receivables (Level 2). In the case of insufficient reason to expect recovery, the expected loss must be calculated as the difference between the gross carrying amount and the present value of the expected cash flows discounted at the original effective interest rate (Level 3). An indicator that there is insufficient reason to expect recovery includes a situation, among others, when internal or external information indicates that the Group will not fully receive the contractual amounts outstanding. All accounts receivable were aggregated to measure the expected credit losses, as they all share the same credit risk characteristics. All accounts receivable are currently due from customers in the same industry and are therefore exposed to the same credit risks. The impairment is determined on the basis of the premium for an industry credit default swap. In the event that accounts receivable cannot be grouped together, they are measured individually. Accounts receivable are derecognized when it can be reasonably expected that they will not be recovered. Impairment of accounts receivable is recognized under other expenses. If in subsequent periods amounts are received that were previously impaired, these amounts are recognized in other income. 2.4.3 NON-FINANCIAL The carrying amounts of the Group’s non-financial non-financial The recoverable amount of an asset or CGU is the greater of its value-in-use value-in-use, pre-tax pre-tax The Group’s corporate assets do not generate separate cash flows and are utili |
