Catom Annual Report 2023 EN

2.12.1. Negative goodwill Negative Goodwill arising from acquisitions is deferred and credited to the income state ment on a straight-line basis in proportion to the weighted average remaining useful life of the amortizable assets acquired.

2.13. Leasing 2.13.1. Operating leases

The company may have lease contracts where many of the risks and rewards associated with ownership of the underlying assets have not been transferred to the company. These lease contracts are accounted for as operating leases. Liabilities under operating lease contracts are recognised in the profit and loss account over the term of the contract on a straight-line basis.

3. Principles for the determination of results

3.1. General The result for the year is determined as the difference between the net realisable value of the goods and services delivered and the costs and other expenses incurred during the year. Revenue from transactions is recognised in the year in which it is realised. 3.2. Revenue recognition 3.2.1. Sale of goods Net sales are defined as revenue arising from performance obligations to deliver goods and provide services, less discounts and taxes levied on sales.

Revenue is recognized for each separately identifiable performance obligation. A promised good or service is distinguishable if the following criteria are met:

• the customer can independently utilize the benefits of the goods or services, whether or not jointly with resources the customer has or can obtain; and • the commitment to provide the goods or services is distinguishable from the other commitments included in the agreement.

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