Catom Annual Report 2022 EN

3.11. Taxes Taxes on the result for the year are calculated on the result before taxes as presented in the profit and loss account, taking into account any available deductible prior-year tax losses (insofar as not included under deferred tax receivables) as well as tax-exempt profit components and the addition of non-deductible expenses. Any changes in deferred tax assets and deferred tax liabilities as a result of changes in the applicable tax rate are also taken into account.

Corporation tax is charged on to the companies included in the tax entity as if these participations were individually liable for tax.

4. Financial instruments and risk management

Financial instruments include both primary financial instruments (such as receivables and payables) and derivative financial instruments (derivatives).

In the notes to the various items on the balance sheet, the fair value of the instrument in question is explained if it differs from the carrying value. If the financial instrument is not included in the balance sheet, the information on the fair value is given in the notes to the ‘Off-balance sheet rights and obligations and contingent assets and liabilities’. Primary financial instruments For the principles of primary financial instruments, please refer to the treatment per balance sheet item of the ‘Principles for the valuation of assets and liabilities’.

Derivative financial instruments (derivatives). The group applies hedge accounting based on individual documentation per individual hedge relationship.

The group documents how the hedge relationships fit with its risk management objectives, hedge strategy and hedge effectiveness expectations.

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