Note 23 – Research and Development Costs Audited

Research and development (R&D) costs include all primary costs directly related to this function, as well as internal services and imputed depreciation. These costs are incurred for:

  • Development of new products and services
  • Improvement of existing products and services
  • Development of new production processes
  • Improvement of existing production processes
  • Cost of patents
  • Purchase price for product and process know-how to the extent not capitalized

The research and development costs amounted to CHF 157 million (2016: CHF 144 million) and represent the full range of R&D activity. However, the consolidated income statement discloses research and development costs of only CHF 103 million (2016: CHF 84 million), as the remainder of such costs are absorbed in “Cost of goods sold” for R&D products and services sold.