Staatsolie Annual Report 2017

Annual Report 2017 113
Staatsolie Maatschappij Suriname N.V.
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial 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 are stated at the lower of cost and net realizable value. Net realizable value is the estimated
January 1, 2016 is US$ 2,475). The amount recognized is the best estimate calculated by management
selling price in the ordinary course of business, less estimated costs of completion and the estimated
of the expenditure required.
costs to sell.
The
4.8
cost
Employee
of crude oil
defined
and refined
benefit
products
liabilities
is the purchase cost, the cost of refining, including the
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
operating The Group capacity, has three determined types of employee on a weighted benefit average plans, basis. namely pensions, post-employment benefits and
other long-term employee benefit plans. A summary of the net employee benefit liabilities for the different
The net realizable value of crude oil and refined products is based on the estimated selling price in the
benefits are shown in the table below.
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make the sale.
As at December 31, As at December 31, As at January 1,
x US$ 1,000
Materials and supplies are valued using the weighted 2017average cost method. 2016
2016
Pension Plans
Employee pension plan 13,487 34,121 29,231
Pipeline Executive fill pension plan 646 1,197 628
GOw2 retiree pension plan 96 112 129
Crude
Post-employment
oil, which is
benefit
necessary
plans
to bring a pipeline into working
-
order, is treated as a part of the related
-
pipeline. Retiree This Medical is on Plan the Staatsolie basis that it is not held for sale 13,506 or consumed in 15,441 a production process, 10,116 but is
Retiree Medical plan GOw2 492 424 783
necessary Retiree Medical to the Plan operation SPCSof a facility during more than 240 one operating cycle, 222and its cost cannot 143 be
recouped Pension through gratuity Staatsolie sale (or is significantly impaired). This 2,965applies even if 2,734 the part of inventory 2,522 that is
Pension gratuity SPCS 18 15 12
deemed Funeral to grant be an plan item Staatsolie of property, plant and equipment cannot 894 be separated 833 physically from the 763 rest of
inventory. Funeral grant It is valued plan SPCS at cost and is depreciated over the useful 8 life of the related 7asset.
5
Supplementary Provision Board
733 646 589
members
Other long-term employee benefit plans - -
n. Impairment of non-financial assets
Jubilee gratuity Staatsolie 6,602 6,430 6,072
The Jubilee Group gratuity assesses SPCS at each reporting date whether there 103 is an indication that an 87asset may be impaired. 71
Jubilee gratuity GOw2 93 89 111
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates
Additional holiday allowance Staatsolie 2,839 2,681 2,485
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
generating Additional units holiday (CGU) allowance fair value SPCSless costs of disposal 30 and its value in use. 30It is determined for 55 an
individual asset, unless the asset does Total not generate cash 42,752 inflows that are 65,069 largely independent 53,715 of those
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
Pensions and other post-employment benefit plans
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
The Group has two defined benefit pension plans (funded), one for the employees and one for the
assessing value in use, the estimated future cash flows are discounted to their present value using a pretax
discount rate that reflects current market assessments of the time value of money and the risks
directors. The employee pension plan is a final salary plan and requires contributions to be made to a
separately administered fund. The directors’ pension plan is an insured plan. In addition, the Group
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
provides certain post-employment benefits to employees (unfunded) such as healthcare, excedent
into account. If no such transactions can be identified, an appropriate valuation model is used.
gratuity, funeral grants, pension gratuity, jubilee and additional holiday allowances.
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
in those expense categories consistent with the function of the impaired asset, except for a property
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
recognized in OCI up to the amount of any previous revaluation.
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