Catom Annual Report 2022 EN

Depreciation is based on the expected useful life of the asset, taking into account any residual value. The straight-line method is applied for this purpose. Depreciation amounts are calculated based on a fixed percentage of the asset’s cost less any investment subsidies, taking into account its residual value. Depreciation is applied as from the moment when the use is started. Periodic major maintenance is capitalised according to the component approach, except for the Vehicles category. For this we refer to the notes to the provision for major main tenance. Under the component approach, the total expenditure is allocated to the constituent parts. The non-consolidated participations over which the company can exercise significant influence are stated at net asset value, which is determined according to the equity method (net asset value), from the date of their acquisition. The difference between the cost of the participating interest and its initial valuation based on the equity method is recognised as goodwill. Cost is equal to the cost of acquisition plus any costs that are directly attributable to the acquisition of the participating interest. These participations are then recognised in the balance sheet according to this method, based on the share of the company in their net asset value plus its share in the results of the participations from the date of their acquisition. The net asset value is determined according to the accounting policies of the participating legal entity as described in the financial statements . 2.6. Financial fixed assets 2.6.1. Participations with significant influence

The share of the company in the result of the participations is recognised in the profit and loss account.

If the net asset value of the participating interest is negative, it is valued at zero. Other long-term interests in the participating interest that effectively constitute part of the net investment are taken into account for this purpose. If and insofar as the company guaran tees the repayment of all or part of the debts of the participations, or if it has a constructive obligation to enable the participating interest to repay its debts, a provision is recognised accordingly.

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