Catom Annual Report 2022 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 maximum of 20 years applying. 2.4.3. Goodwill Goodwill arising from acquisitions is capitalised and amortised on a straight-line basis over its estimated useful life. If the useful life exceeds five years, this extension is disclosed in the notes. 2.5. Tangible fixed assets Upon initial recognition, tangible fixed assets for 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 initial recognition the properties, depot installations, land and vehicles in own use are stated at cost; occasionally a revaluation takes place, less accumulated depreciation.

Other fixed assets are stated at cost of acquisition less straight-line depreciation over their estimated useful life and less any impairment.

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.

Realisation of the revaluation reserve takes place through use (depreciation) and/or disposal of the asset. The realised portion of revaluations is reclassified to other reserves.

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