Catom Annual Report 2019 EN

2.6. Impairment of fixed assets On each balance sheet date the company determines whether there are any indications that a fixed asset may be impaired. If such indications exist, the recoverable amount of the asset is determined. If it is not possible to determine the recoverable amount of an individual asset, then the recoverable amount of the cash-generating unit to which the asset belongs is determined. Impairment means that the book value of an asset is higher than the recoverable amount; the recoverable amount is the higher of the net realisable value and the value in use. The net realisable value is determined on the basis of the active market. For the determination of the value in use, in calculating the net present value a pre-tax discount rate was used of 8.0% (2018: 8.0%). For assets that are not stated at fair value, any impairment loss is charged directly to the profit and loss account. If it is determined that an impairment loss that was recognised in the past no longer exists or has decreased, then the higher book value of the related assets is recognised but not above the book value that would have been determined if no impairment loss had been recognised for the asset. For financial instruments, the company likewise determines on each balance sheet date whether there are objective indications of impairment of a financial fixed asset or a group of financial fixed assets. If there are objective indications of impairment, the company determines the amount of the impairment loss and charges it directly to the profit and loss account. 2.7.1. Participating interests with significant influence Participating interests over which the company can exercise significant 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. 2.7. Financial fixed assets

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