Catom Annual Report 2019 EN

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 annual accounts.

The share of the company in the result of the participating interests is recognised in the profit and loss account.

If the net asset value of the participating interest is negative, it is valued at zero. Other long-term interests in the participating interest that effectively constitute part of the net investment are taken into account for this purpose. If and insofar as the company guarantees the repayment of all or part of the debts of the participating interests, or if it has a constructive obligation to enable the participating interest to repay its debts, a provision is recognised accordingly. A subsequently acquired share in the profit of the participating interest is only recognised if and insofar as the accumulated non-recognised share in the loss has been made good. 2.7.2. Loans issued and other receivables Upon initial recognition, receivables included under other financial fixed assets are stated at their fair value (usually nominal value) less any provisions deemed necessary. Subsequently, these receivables are stated at amortised cost.

2.8. Stocks The stocks consist of fuels (finished product) and other products (goods for resale).

The stocks of other products are stated at cost by applying the FIFO method (first in, first out) or at a lower net realisable value.

The net realisable value is the estimated selling price less directly attributable selling expenses. In determining the net realisable value, any obsolescence of the stocks is taken into account.

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