37 III. Changes in signi\ufb01cant accounting policies There are no signi\ufb01cant new IFRS standards made e\ufb00ective in 2022 that e\ufb00ect the group accounts for Photocure. IV. Disclosures regarding new standards not yet e\ufb00ective There are no IFRS or IFRIC interpretations that are not yet e\ufb00ective that would be expected to have a material impact on the Group. The new and amended standards and interpretations from IFRS that were adopted by the EU with e\ufb00ect from 2022 did not have any signi\ufb01cant impact on the reporting in 2022. V. Use of judgements and estimates In preparation of these consolidated \ufb01nancial statements, management has made judgments, estimates and assumptions that a\ufb00ect the application of the Group\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Information about judgements made in applying accounting policies that have the most signi\ufb01cant e\ufb00ects on the amounts recognized, and information about assumptions and estimation uncertainties that have signi\ufb01cant risk of resulting in a material adjustment in the \ufb01nancial statements as of 31 December 2022, are included in the following notes: Note 13 and 22 Goodwill and customer relations: the assumptions in the application of IFRS 36 of the annual goodwill impairment analysis, and the remeasurement of the fair value of the earnout liability according to IFRS 9. Note 11 Recognition of deferred tax asset: available future taxable pro\ufb01t against which tax losses carried forward can be used. Note 9 and 10 Long term loan subsidiary: impairment and key assumptions underlying the balance sheet value in Parent company. VI. Summary of important guidelines for accounting for the Group A. Classi\ufb01cation Assets/liabilities are classi\ufb01ed as current assets/current liabilities when they meet one of the following criteria: They are expected to be realized in the Group\u2019s ordinary operating cycle or are kept for sale or consumption; They are expected to be realized within 12 months of the balance sheet date; or They are in the form of cash or a cash equivalent. All other assets/liabilities are classi\ufb01ed as \ufb01xed assets/long-term liabilities B. Currency Monetary items in foreign currencies are converted at closing rate of exchange. In the absence of any statement to the contrary, realized and unrealized exchange rate gains and losses are included in \ufb01nancial income or expenses. Transactions in foreign currencies are recorded at the exchange rate on the date of transaction. Assets and liabilities in foreign currencies are translated into NOK at the exchange rate applicable on the balance sheet date. Income and expenses in foreign subsidiaries are translated into NOK at the average exchange rate for the \ufb01nancial statement period. The assets and liabilities of the foreign subsidiaries are translated to NOK at exchange rates at the reporting date C. Property, plant, equipment and intangible assets Property, plant and equipment (PPE) are recognized at cost less deductions for accumulated depreciation and accumulated impairment losses. PPE are depreciated over the expected useful life of the assets taking any residual value into consideration. Costs incurred for major replacements and upgrades of PPE are added to cost if it is probable that the costs will generate future economic bene\ufb01ts for the Group and if the costs can be reliably measured. Ordinary maintenance is expensed as incurred. PPE are depreciated on a straight-line basis over the estimated useful life of the asset as follows: Production and test equipment 5 years Furniture and o\ufb03ce equipment 3\u20135 years Intangible development expenditures are amortized on a straight-line basis in the pro\ufb01t and loss over the remaining patent period for the approved product and indication as follows: Product development 4 - 10 years Customer relations 10 years D. Impairment Non-current & intangible assets that are recognized in the balance sheet, are tested for impairment if there are indications of a loss in value. If the book value of an asset is higher than the recoverable value of the asset, the loss in value is recognized in pro\ufb01t and loss. The recoverable value is the