Kazia Therapeutics Annual Report 2021

50 Kazia Therapeutics Limited 0 Annual Report 2021 Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. Judgement is used to determine whether any indicators of impairment exist, and reference is made to the considerations included in AASB 136 Impairment of Assets in this assessment. If an impairment trigger is found to exist, the recoverable amount of the asset is determined. NOTE 4. OPERATING SEGMENTS Identification of reportable operating segments The consolidated entity’s operating segment is based on the internal reports that are reviewed and used by the Board of Directors (being the Chief Operating Decision Makers (‘CODM’)) in assessing performance and in determining the allocation of resources. The consolidated entity operates in the pharmaceutical research and development business. There are no operating segments for which discrete financial information exists. The information reported to the CODM, on at least a quarterly basis, is the consolidated results as shown in the statement of profit or loss and other comprehensive income and statement of financial position. Major customers During the year the consolidated entity transacted with two customers, and revenue from each customer amounted to in excess of 10% of the total revenue from the period. Both companies entered into license agreements for the consolidated entity’s drug assets. NOTE 5. REVENUE Consolidated 2021 2020 $ $ Licensing revenue 15,182,711 - Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 2021 2020 $ $ Geographical regions China 10,006,031 - Sweden 5,176,680 - 15,182,711 - Timing of revenue recognition Licensing revenue recognised at a point in time 15,182,711 - NOTE 6. OTHER INCOME Consolidated 2021 2020 $ $ Net foreign exchange gain - 4,631 Payroll tax rebate 2,192 2,259 Subsidies and grants - 20,000 Research and development rebate - 968,110 Other income 2,192 995,000 NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)