Catom Annual Report 2019 EN

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. Fair value is equal to the asset’s current cost at the time of its revaluation, less accumulated depreciation.

Other fixed assets are stated at cost of acquisition less straight-line depreciation over their estimated useful life and less any impairment.

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.

No major maintenance provision has been recognised for the future costs of major maintenance on company buildings. These costs are charged directly to profit or loss.

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