Staatsolie Annual Report 2017

Annual Report 2017 121
Staatsolie Maatschappij Suriname N.V.
Notes Notes to to the the Consolidated financial statements for for the the years ended December 31, 2017 and 2016
(continued)
The Inventories plan asset are value stated of at the the Staatsolie lower of cost retiree and medical net realizable plan is value. provided Net by realizable the insurance value company is the estimated where
the selling plan price assets in are the incorporated ordinary course in an of annuity business, insurance less estimated policy. The costs fair value of completion of plan assets and the is the estimated sum of
the costs surrender to sell. value and the estimated excess interest, as shown below:
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
x US$ 1,000 2017 2016 January 1, 2016
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
Surrender value 6,621 6,276 5,951
operating Excess interest capacity, determined on a 81weighted 117 average basis. 98
Fair value of assets 6,702 6,393 6,049
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
Retiree medical plan others
2017 2016
make the sale.
in US$ GOw2 SPCS Total GOw2 SPCS Total
Defined benefit obligation as at
Materials and supplies are valued (423,847) using the (221,957) weighted average (645,804) cost method. (783,047) (143,393) (926,440)
January 1
Interest cost (47,968) (9,889) (57,857) (48,233) (6,453) (54,686)
Pipeline fill
Current service cost (36,750) (36,455) (73,205) (35,033) (22,009) (57,042)
Crude Net benefit oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
(84,718) (46,344) (131,062) (83,266) (28,462) (111,728)
expense(recognized in P&L)
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
necessary Benefits paid to the operation of a facility 2,146 during - more than 2,146 one operating 1,082 cycle, and - its cost 1,082cannot be
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
Currency translation 4,222 2,211 6,433 361,390 - 361,390
deemed Experience to different be an than item assumed of property, 7,965 plant and (12,192) equipment (4,227) cannot be separated 26,509 physically (5,802) from 20,707the rest of
Changes in assumptions 2,543 38,320 40,863 53,485 (44,300) 9,185
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
Sub total included in OCI 14,730 28,339 43,069 441,384 (50,102) 391,282
Defined benefit obligation as at
n. Impairment of non-financial (491,689) assets (239,962) (731,651) (423,847) (221,957) (645,804)
December 31
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
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
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
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation model is used.
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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