Staatsolie Annual Report 2017

Annual Report 2017 104
Staatsolie Maatschappij Suriname N.V.
Notes Staatsolie to the Maatschappij Consolidated Suriname financial N.V. statements for the years ended December 31, 2017 and 2016
(continued)
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016 (continued)
Inventories 4.2 Refining are stated properties at the lower of cost and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs to sell.
Land & Lease Building
Abandon
Other
hold and Machine & ment
Fixed Projects in Grand
x US$ 1,000
improvement Structure Equipment Costs Pipelines Assets Progress Total
The Cost cost of crude oil and refined products is the purchase cost, the cost of refining, including the
appropriate At January 1, 2016 proportion of depreciation, depletion and 9,774 amortization 1,083,786 and 11,983 overheads 8,559 based 33,249 on normal 2,567 27,427 1,177,345
Additions - - - - - 1 - 1
operating Adjustments* capacity, determined on a weighted average basis. - - - (3,730) - - - (3,730)
Capitalized from PIP to PPE and Expensed current Year - 23,389 607 - - 14 (24,310) (300)
The Disposals net /Desinvestment realizable value current of year crude oil and refined products - is based (1,767) on the estimated - -selling price - in the (5) - (1,772)
Expense to P&L - - - - - - (1,820) (1,820)
ordinary
At December
course
31, 2016
of business, less the estimated costs of
9,774
completion
1,105,408
and the
12,590
estimated
4,829
costs necessary
33,249 2,577
to
1,297 1,169,724
make Additions the sale.
Adjustments*
-
-
-
(9,277)
-
-
-
2,776
-
-
37
-
16,720
-
16,757
(6,501)
Materials Capitalized from and PIP supplies to PPE and are Expensed valued using current the Yearweighted average - cost 14,769 method. 155 - - - (14,933) (9)
Expense to P&L - - - - - - (1,949) (1,949)
At December 31, 2017 9,774 1,110,900 12,745 7,605 33,249 2,614 1,135 1,178,022
Depreciation
Pipeline fill
At January 1, 2016 (1,666) (103,736) (8,698) - (4,523) (2,430) - (121,053)
Crude Depreciation oil, current which year is necessary to bring a pipeline into working - (47,400) order, is treated (879) as a (342) part of (1,240) the related (90) - (49,951)
Adjustments - 2,878 322 - - - - 3,200
pipeline. Depreciation This disinvestment is on the current basis year that it is not held for sale - or consumed 2,388 in a - production - process, - but is 5 - 2,393
necessary At December to 31, the 2016 operation of a facility during more (1,666) than one (145,870) operating (9,255) cycle, and (342) its cost (5,763) cannot (2,515) be
- (165,411)
Depreciation current year - (45,131) (915) (187) (1,240) (51) - (47,524)
recouped Adjustments through sale (or is significantly impaired). This - applies 1,043even if the - part of - inventory - that is - - 1,043
Depreciation disinvestment current year - - - - - - - -
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
At December 31, 2017 (1,666) (189,958) (10,170) (529) (7,003) (2,566) - (211,892)
inventory. Net book value: It is valued at cost and is depreciated over the useful life of the related asset.
At January 1, 2016 8,108 980,050 3,285 8,559 28,726 137 27,427 1,056,292
At December 31, 2016 8,108 959,538 3,335 4,487 27,486 62 1,297 1,004,313
At December n. 31, Impairment 2017 of non-financial assets 8,108 920,942 2,575 7,076 26,246 48 1,135 966,130
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
* Adjustments to abandonment cost relates to changes in the decommissioning provision
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those