Notes to Consolidated Financial Statements  Year ended December 31, 2011  3.  Significant accounting policies (continued):  (f) Intangible assets  (i) Other intangible assets  (ii) Amortization  Other intangible assets that are acquired by the Corporation have finite useful lives are measured at  cost less accumulated amortization and accumulated impairment losses.  Amortization is based on the cost of an asset less its residual value. Amortization is recognized in  profit or loss on a straight-line basis over the estimated useful lives of the intangible assets from the  date that they are available for use. Intangible assets held by the Corporation include intellectual  property and are amortized over the 80 year life of the license and royalty agreement. Amortization  methods, useful lives and residual values are reviewed at each reporting date and adjusted if  appropriate. A financial asset not carried at fair value through profit or loss is assessed at each reporting date to  determine whether there is objective evidence that it is impaired. A financial asset is impaired if  objective evidence indicates that a loss event has occurred after the initial recognition of the asset,  and that the loss event has a negative effect on the estimated future cash flows of that asset that  can be estimated reliably.  Objective evidence that financial assets are impaired can include default or delinquency by a debtor,  restructuring of an amount due to the Corporation on terms that the Corporation would not  consider otherwise, indications that a debtor or issuer will enter bankruptcy, economic conditions  that correlate with defaults or the disappearance of an active market for a security. In addition, for  an investment in an equity security, a significant or prolonged decline in its fair value below its cost  is objective evidence of impairment.  Impairment losses on available-for-sale financial assets are recognized by reclassifying losses  accumulated in fair value reserve in equity, to profit or loss. The cumulative loss that is reclassified  from equity to profit or loss is the difference between the acquisition cost, net of any principal  repayment and amortization, and the current fair value, less any impairment loss recognized  previously in profit or loss. Changes in impairment provisions attributable to application of the  effective interest method are reflected as a component of interest income. If, in a subsequent  period, the fair value of an impaired available-for-sale debt security increases and the increase can  be related objectively to an event occurring after the impairment loss was recognized in profit or  loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or  loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity  security is recognized in other comprehensive income.  Alaris Royalty Corp. 2011 Annual Report  27  Available-for-sale financial assets  (i) Non-derivative financial assets  (g) Impairment 