Catom Annual Report 2023 EN

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.

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.

2.6. Financial fixed assets

2.6.1. Participating interests with significant influence The non-consolidated participating interests over which the company can exercise signifi cant influence are stated from the date of their acquisition at net asset value, which is determined according to the equity method (net asset value). 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 participating interests 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 participating interests 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.

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