Catom Annual Report 2020 EN

2.6.2. Loans issued and other receivables Upon initial recognition, receivables included under other financial fixed assets are stated at their fair value (usually nominal value) less any provisions deemed necessary. Subsequently, these receivables are stated at amortised cost.

2.7. Stocks The stocks consist of fuels (finished product) and other products (goods for resale).

The stocks are stated at cost by applying the FIFO method ( first in, first out ) or at a lower net realisable value.

The net realisable value is the estimated selling price less directly attributable selling expenses. In determining the net realisable value, any obsolescence of the stocks is taken into account. 2.8. Receivables Current receivables are stated at fair value upon their initial recognition and subsequently at amortised cost less any provisions deemed necessary. These provisions are determined through individual assessment of the receivables.

Where receivables involve a premium or discount and transaction costs, so that the effective interest rate is zero, the amortised cost is equal to nominal value.

2.9. Cash and cash equivalents Cash and cash equivalents are stated at nominal value.

2.10. Revaluation reserve 2.10.1. Revaluation of tangible fixed assets

If revaluations are reflected in the revaluation reserve net of the relevant (deferred) tax liabilities, the realisation of the revaluations is credited to other reserves on a net basis.

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