Staatsolie Annual Report 2017

Annual Report 2017 111
Staatsolie Maatschappij Suriname N.V.
Notes
Staatsolie
to the
Maatschappij
Consolidated
Suriname
financial statements
N.V.
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 4.7 Provisions
are stated 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.
Decomissioning
Decomissioning Decomissioning Environmental Other
production field &
refinery
power plant
risk
provisions
The x US$ cost 1,000 of crude oil and refined products facilities is the purchase cost, the cost of refining, including the
Total
At January 1, 2016 66,283 8,559 203 2,475 1,600 79,120
appropriate Arising during the proportion year of depreciation, depletion and - amortization and - overheads based - on normal 149 - 149
Write-back of unused provisions - - - - -
operating capacity, determined on a weighted average basis.
Discount rate adjustment & imputed interest (31,563) (3,729) (121) (36) - (35,449)
Unw inding of discount 5,342 709 16 - - 6,067
The Utilisation net realizable value of crude oil and refined products - is based on - the estimated selling - price in the - - -
At December 31, 2016 40,062 5,539 98 2,588
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
1,600 49,887
Arising during the year - - - 157 1,758 1,915
make the sale.
Write-back of unused provisions - - - - -
Discount rate adjustment & imputed interest 35,242 2,776 101 36 - 38,155
Materials Unw inding of and discount supplies are valued using the weighted 4,118 average cost method. 569 10 - - 4,697
Utilisation - - - - (1,600) (1,600)
At December 31, 2017 79,422 8,884 209 2,781 1,758 93,054
Pipeline fill
Comprising:
Crude Current at oil, January which 1, 2016 is necessary to bring a pipeline into - working order, is - treated as a part - of the related - - -
Non-current at January 1, 2016 66,283 8,559 203 2,475 1,600 79,120
pipeline. This is on the basis that it is not held for 66,283 sale or consumed 8,559in a production 203 process, but 2,475 is
-
necessary Comprising: to the operation of a facility during more than one operating cycle, and its cost cannot be
1,600 79,120
Current at December 31, 2016 - - - - 1,600 1,600
recouped
Non-current at
through
December
sale
31, 2016
(or is significantly impaired).
40,062
This applies even
5,539
if the part of inventory
98
that
2,588
is
- 48,287
deemed to be an item of property, plant and equipment 40,062 cannot be separated 5,539 physically 98 from the rest of 2,588
Comprising:
1,600 49,887
inventory. Current at December It is valued 31, 2017 at cost and is depreciated over the - useful life of the - related asset. - - - -
Non-current at December 31, 2017 79,422 8,884 209 2,781 1,758 93,054
79,422 8,884 209 2,781 1,758 93,054
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