Catom Annual Report 2020 EN

2.3. Foreign currency 2.3.1. Functional currency

Items in the annual accounts of the group companies are stated on the basis of the currency of the markets in which the group company in question conducts most of its business activities (its functional currency). The consolidated accounts are stated in euros. This is the functional currency as well as the presentation currency of Catom B.V. 2.3.2. Transactions, receivables and payables Transactions in foreign currency during the year are included in the annual accounts at the rates applying on the transaction date. Monetary assets and liabilities in foreign currency are converted to the functional currency at the rate applying on the balance sheet date. Exchange differences resulting from settlement and conversion are charged or credited as appropriate to the profit and loss account.

Non-monetary assets that are stated at cost of acquisition in a foreign currency are translated at the exchange rate applying on the transaction date.

2.4. Intangible fixed assets Intangible fixed assets are stated at cost of acquisition less amortisation. Impairments are taken into account; this latter aspect applies if the book value of the asset (or of the cashflow generating unit to which the asset belongs) is higher than its recoverable amount.

For more information on the steps taken to determine whether an intangible fixed asset is impaired, see section 2.6 of these notes.

2.4.1. Research and development costs Research costs are charged to the profit and loss account. Expenses for development projects are capitalised as part of the cost of acquisition when it is probable that the project will be commercially and technically successful (i.e. when it is probable that economic benefits will be realised) and the costs can be determined reliably. Amortisation of capitalised development costs commences as soon as commercial production has started; it is then spread over the asset’s estimated useful life. A statutory reserve is maintained equal to the asset’s book value.

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