Catom Annual Report 2020 EN

2.4.2. Intellectual property The costs of intangible fixed assets other than internally generated assets, including trademark rights, operating rights and the client portfolio, are stated at cost of acquisition less straight-line amortisation over their estimated useful life, with a minimum of 20 years applying. 2.4.3. Goodwill Goodwill arising from acquisitions and calculated in accordance with section 3.7 is capitalised and amortised on a straight-line basis over its estimated useful life. If the useful life exceeds five years, this extension is explained in the notes. 2.5. Tangible fixed assets Upon initial recognition, tangible fixed assets in the company’s own use are stated at cost less any investment subsidies. Cost consists of the cost of acquisition or production cost plus other costs that are needed to bring the asset to its location and the condition for its intended use. After first recognition the properties, depot installations, land and vehicles in own use are stated at cost; occasionally a revaluation takes place. Fair value is equal to the asset’s current cost at the time of its revaluation, less accumulated depreciation. Any value increase of buildings, depot installations, land and vehicles resulting from a revaluation is credited to a revaluation reserve. If the revaluation leads to a deferred tax liability, a provision is recognised for this deferred tax liability. Any reduction in value resulting from a revaluation is charged against the revaluation reserve up to the amount of the value increase that was originally credited to the revaluation reserve for the asset in question. Any excess is charged directly to the profit and loss account. In the event of a reversal of a value increase that was previously charged to the profit and loss account, the value increase is credited to the profit and loss account. Other fixed assets are stated at cost of acquisition less straight-line depreciation over their estimated useful life and less any impairment.

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