Catom Annual Report 2020 EN

Income and expenditure relating to interest, dividends received and corporation tax are classified under the cash flow from operating activities. Dividends paid are included in the cash flow from financing activities. The cost of acquisition of the acquired group company has been included in the cash flow from investment activities insofar as payment took place in cash. The cash and cash equivalents held by the acquired group company have been deducted from purchase price. Transactions that do not involve any inflow or outflow of cash or cash equivalents, including finance leases, have not been included in the cash flow statement. 1.7. Estimates For purposes of applying the accounting principles and rules for the preparation of the annual accounts, the Executive Board of the Group needs to assess various matters and make estimates that may be of vital importance for the amounts included in the annual accounts. If providing an insight as stipulated in Section 2:362(1) of the Dutch Civil Code requires it, the nature of these assessments and estimates, including the underlying assumptions, is described in the explanatory notes to the relevant items. 2.1. General The consolidated annual accounts have been prepared in accordance with the legal requirements set out in Title 9, Book 2 of the Dutch Civil Code and the accounting standards issued by the Dutch Accounting Standards Board (RJ). Assets and liabilities are generally stated at cost of acquisition or production cost. If no specific valuation principle is mentioned, the relevant item is stated at cost of acquisition. The balance sheet, profit and loss account and cash flow statement include references. These references relate to the explanatory notes. 2.2. Comparison with preceding year The principles applied for the valuation of assets and liabilities and for the determination of periodic results have not changed compared to the preceding year. 2. Principles for the valuation of assets and liabilities

59