Catom Annual Report 2023 EN

2.4. Intangible fixed assets Intangible fixed assets are stated at cost of acquisition less amortisation. Impairments are taken into account; this latter aspect applies if the book value of the asset (or of the cash flow generating unit to which the asset belongs) is higher than its recoverable amount. 2.4.1. Research and development costs Research costs are charged to the profit and loss account. Expenses for development projects are capitalised as part of the cost of acquisition when it is probable that the project will be commercially and technically successful (i.e. when it is probable that economic benefits will be realised) and the costs can be determined reliably. Amortisation of capitalised develop ment costs commences as soon as commercial production has started; it is then spread over the asset’s estimated useful life. A statutory reserve is maintained equal to the asset’s book value. 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 explained in the notes. 2.5. Tangible fixed assets Upon initial recognition, tangible fixed assets in 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 first recognition the properties, depot installations, land and vehicles in own use are stated at cost; occasionally a revaluation takes place, less accumulated depreciation.

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