Staatsolie Annual Report 2017

Annual Report 2017 123
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
Supplementary provision board members
selling x US$1 price in the ordinary course of business, 2017 less estimated 2016 costs of completion and the estimated
costs Defined to benefit sell. obligation as at January 1 (646,212) (588,938)
The Interest cost cost of crude oil and refined products (29,079) is the purchase (26,502) cost, the cost of refining, including the
Current service cost (38,632) (37,277)
appropriate Net benefit expense(recognized proportion of depreciation, in P&L) depletion (67,711) and amortization (63,779) and overheads based on normal
operating capacity, determined on a weighted average basis.
Benefits paid - -
The net realizable value of crude oil and refined products is based on the estimated selling price in the
Experience different than assumed (19,326) 16,067
ordinary Changes in course assumptions of business, less the estimated costs - of completion (9,562) and the estimated costs necessary to
make Sub total the included sale. in OCI (19,326) 6,505
Materials Defined benefit and supplies obligation are as at valued December using 31 the weighted (733,249) average (646,212) cost method.
Pipeline fill
Other long-term employee benefits
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
pipeline. Jubilee gratuity This is on plan the basis that it is not held for sale or consumed in a production process, but is
necessary Staatsolie, to SPCS the operation and GOw2 of employees a facility during are eligible more than to receive one operating a jubilee cycle, gratuity and based its cost on a cannot specified be
recouped number of through service years. sale (or The is amount significantly of the impaired). gratuity depends This applies on the even jubilee if the and part varies of with inventory the numbers that is
deemed of service to years be an as item stated of property, in the labor plant agreement. 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.
Jubilee benefits
2017 2016
x US$1 Staatsolie SPCS GOw2 Total Staatsolie SPCS GOw2 Total
n. Impairment of non-financial assets
Defined benefit obligation as at
(6,429,764) (87,307) (88,708) (6,605,779) (6,072,395) (70,605) (110,857) (6,253,857)
The January Group 1 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
Interest cost (195,105) (3,929) (9,674) (208,708) (179,644) (3,177) (6,865) (189,686)
Current service cost (513,215) (11,620) (8,488) (533,323) (447,343) (10,143) (4,982) (462,468)
Net benefit expense(recognized
in P&L)
(708,320) (15,549) (18,162) (742,031) (626,987) (13,320) (11,847) (652,154)
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 Benefits paid asset, unless the 962,453 asset does not - generate 6,895 cash 969,348 inflows that 884,634 are largely - independent - of 884,634 those
from Currency other translation assets or groups of - assets. - Where the 883 carrying 883 amount of - an asset - or CGU 51,163 exceeds 51,163 its
Experience different than assumed (378,782) (444) 5,865 (373,361) (576,828) (1,909) (16,239) (594,976)
Changes in assumptions (47,565) - - (47,565) (38,188) (1,473) (928) (40,589)
Sub total included in the P&L (426,347) (444) 6,748 (420,043) (615,016) (3,382) 33,996 (584,402)
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
Defined benefit obligation as at
December 31
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
(6,601,978) (103,300) (93,227) (6,798,505) (6,429,764) (87,307) (88,708) (6,605,779)
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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