Catom Annual Report 2019 EN

3.8.2. Pensions The contribution payable on the reporting year, taking into account the maximum pensionable salary and the deductible, is recognised as a charge. 3.9 Financial income and expenses 3.9.1. Interest income and expenses Interest income and expenses are recognised on an accruals basis, taking into account the effective interest rate of the relevant assets and liabilities. 3.10. Share in the result of non-consolidated companies The results of non-consolidated participating interests are accounted for on the basis of net asset value. 3.11. Taxes Taxes on the result for the year are calculated on the result before taxes as presented in the profit and loss account, taking into account any available deductible prior-year tax losses (insofar as not included under deferred tax receivables) as well as tax-exempt profit components and the addition of non-deductible expenses. Any changes in deferred tax assets and deferred tax liabilities as a result of changes in the applicable tax rate are also taken into account.

Corporation tax is charged on to the companies included in the tax entity as if these participating interests were individually liable for tax.

4. Financial instruments and risk management

4.1. Market risk 4.1.1. Currency risk

The currency risk of the group mainly relates to positions and future transactions in US dollars. The number of outstanding transactions of this type is insignificant. The company therefore does not hedge these risks.

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