Catom Annual Report 2020 EN

3. Principles for the determination of results

3.1. General The result for the year is determined as the difference between the net realisable value of the goods and services delivered and the costs and other expenses incurred during the year. Revenue from transactions is recognised in the year in which it is realised.

3.2. Revenue recognition

3.2.1. Sale of goods Revenue from the sale of goods is recognised as soon as all significant rights and risks associated with the ownership of the goods have been transferred to the buyer. 3.3. Currency differences Currency differences that occur upon settlement or translation of monetary items are accounted for in the profit and loss account in the period in which they occur, unless hedge accounting is applied. 3.4. Net turnover Net turnover comprises the revenue from the delivery of goods and services, less discounts and value-added tax, and after elimination of intercompany transactions. 3.5. Cost of goods sold Cost of goods sold is defined as the direct costs of the goods sold and services rendered that are attributable to the turnover. 3.6. Other operating expenses Other operating expenses is defined as the expenses recognised in the year that are not directly attributable to the cost of the goods delivered. 3.7. Depreciation of tangible and amortisation of intangible fixed assets Intangible fixed assets including goodwill are amortised, and tangible fixed assets are depreciated, on a straight-line basis over the expected useful life of the asset, starting from the date on which the asset is taken into use. Land and real estate investments are not depreciated.

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