Staatsolie Annual Report 2017

Annual Report 2017 105
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 4.3 Other are stated property, at the lower plant of and cost and equipment 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.
x US$ 1,000
Land & Leasehold Building and
Improvement Structure
Machine &
Equipment
The Cost cost of crude oil and refined products is the purchase cost, the cost of refining, including the
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
operating capacity, determined on a weighted average basis.
The net realizable value of crude oil and refined products is based on the estimated selling price in the
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make the sale.
Materials and supplies are valued using the weighted average cost method.
Abandonment
costs
Well &
Equipment
Other Fixed
Assets
Pipeline fill
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
necessary to the operation of a facility during more than one operating cycle, and its cost cannot be
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
n. Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
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
Projects in
Progress
Grand Total
At January 1, 2016 36,660 38,272 124,388 203 1,869 12,531 31,952 245,875
Additions - 1,246 1,141 - - 338 4,301 7,026
Capitalized from PIP to PPE and Expensed current Year - 21 (13) - - 137 (2,533) (2,388)
Translation adjustment on Cost (387) (2,462) (5,205) - - (940) (1,291) (10,285)
Internal transfers - - 4,157 - - 4 (30,967) (26,806)
Expense to P&L - - - - - - (99) (99)
Disposals /Desinvestment current year - - (1,720) (121) (957) (20) - (2,818)
At December 31, 2016 36,273 37,077 122,748 82 912 12,050 1,363 210,505
Additions - 146 163 97 - 405 3,343 4,154
Capitalized from PIP to PPE and Expensed current Year - - - - - 2 (707) (705)
Translation adjustment on Cost 143 550 1,417 - - (174) (3,031) (1,095)
Internal transfers - - 121 - 5 - - 126
Expense to P&L - - - - - - (101) (101)
Disposals /Desinvestment current year - - (5) - (2) - (7)
At December 31, 2017 36,416 37,773 124,444 179 917 12,281 867 212,877
Depreciation and impairment 1 January 2016 (575) (15,718) (29,890) - (1,494) (11,542) - (59,219)
Depreciation current year (16) (1,592) (8,481) (21) (28) (722) - (10,860)
Depreciation disinvestment current year - - 542 - 824 19 - 1,385
Translation adjustment on Accummulated Depreciation 98 2,308 4,117 - - 897 - 7,420
Internal transfer - - - - - (4) - (4)
At December 31, 2016 (493) (15,002) (33,712) (21) (698) (11,352) - (61,278)
Depreciation current year (15) (1,665) (6,258) (2) (13) (430) - (8,383)
Translation adjustment on Accummulated Depreciation (32) (90) (593) - - - - (715)
Internal transfer - - (121) - (4) - - (125)
Depreciation Disinvestment/Internal transfer current year - - (77) - - 2 - (75)
At December 31, 2017 (540) (16,757) (40,761) (23) (715) (11,780) - (70,576)
Net book value:
At January 1, 2016 36,085 22,554 94,498 203 375 989 31,952 186,656
At December 31, 2016 35,780 22,075 89,036 61 214 698 1,363 149,227
At December 31, 2017 35,876 21,016 83,683 156 202 501 867 142,301