Catom Annual Report 2022 EN

2.11. Provisions 2.11.1. General

A provision is recognised for liabilities when it is probable that they will have to be settled and the amount at which settlement will take place at the balance sheet date can be estimated reliably. The amount of the provision is determined based on the best estimate of the amounts required to settle the related liabilities and losses at the balance sheet date.

Provisions are stated at nominal value, except for the provisions for deferred taxes, which are stated at cash value because the effect of the time value of money is material.

2.11.2. Provision for Dutch pension schemes Catom B.V. and its subsidiaries have five pension plans: three pension plans based on the career average system and two pension plans on the basis of a defined contribution scheme. The schemes governed by Dutch law are financed by contributions to pension administrators, to the company pension fund insofar as employees of petrol stations are involved, and to an insurance company for other employees who have a pension entitlement. The pension obligations are recognised as a charge in the profit and loss account based on the contributions to the pension administrator.

A subsidiary of Catom B.V. has a conditional indexation obligation of a percentage of the wage bill for a career average scheme that was replaced by a defined contribution scheme.

At year-end 2022 the group had no pension liabilities other than the annual contributions that are payable to the pension administrators.

2.11.3. Deferred tax receivables and liabilities Deferred tax assets and liabilities are recognised for temporary differences between the book value of assets and liabilities for tax purposes and their book value for financial reporting purposes. The calculation of deferred tax assets and liabilities is based on the tax rates applying at the reporting date, or the tax rates applying in future years insofar as these rates have been substantially enacted at the reporting date. Deferred taxes are stated at present value using a discount rate that is based on the net interest rate. The net interest rate is defined as the rate applying to the legal entity for long-term loans after deduction of tax based on the effective tax rate.

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