Catom Annual Report 2019 EN

2.0 Principles for the valuation of assets and liabilities

2.1. General The consolidated annual accounts have been prepared in accordance with the legal requirements set out in Title 9, Book 2 of the Dutch Civil Code and the accounting standards issued by the Dutch Accounting Standards Board (RJ). Assets and liabilities are generally stated at cost of acquisition or production cost. If no specific valuation principle is mentioned, the relevant item is stated at cost of acquisition. The balance sheet, profit and loss account and cash flow statement include references. These references relate to the explanatory notes. 2.2. Comparison with preceding year The principles applied for the valuation of assets and liabilities and for the determination of periodic results have not changed compared to the preceding year. Items in the annual accounts of the group companies are stated on the basis of the currency of the markets in which the group company in question conducts most of its business activities (its functional currency). The consolidated accounts are stated in euros. This is the functional currency as well as the presentation currency of Catom B.V. 2.3.2. Transactions, receivables and payables Transactions in foreign currency during the year are included in the annual accounts at the rates applying on the transaction date. Monetary assets and liabilities in foreign currency are converted to the functional currency at the rate applying on the balance sheet date. Exchange differences resulting from settlement and conversion are charged or credited as appropriate to the profit and loss account. 2.3. Foreign currency 2.3.1. Functional currency

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