Staatsolie Annual Report 2017

Annual Report 2017 125
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
The significant assumptions used in determining pension, post-employment healthcare and other longterm
employee benefit obligations for the Group’s plans are shown below:
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs to sell.
The cost of crude oil and refined products is the purchase % cost, the cost % of refining, including % the
Discount rate:
appropriate Staatsolie employee proportion pension of plan depreciation, depletion and amortization 4.6% and overheads 4.5% based 4.2% on normal
Staatsolie retiree medical plan 12.5% 4.5% 4.5%
operating capacity, determined on a weighted average basis.
The Staatsolie net realizable jubilee benefits value of crude oil and refined products is 3.1% based on the estimated 3.2% selling price 3.1% in the
Staatsolie periodic additional holiday allow ance 4.5% 4.5% 4.5%
ordinary
Executive
course
pension
of
plan
business, less the estimated costs of completion
4.5%
and the estimated
4.5%
costs necessary
4.5%
to
make
Supplementary
the sale.
Provision Board members 4.5% 4.5% 4.5%
Materials and supplies are valued using the weighted average cost method.
2017 2016 January 1, 2016
Staatsolie funeral grant plan for retirees 4.5% 4.5% 4.5%
Staatsolie pension gratuity 4.5% 4.5% 4.5%
GOw 2 retiree medical plan 12.5% 11.5% 11.5%
GOw 2 jubilee benefits 12.5% 11.5% 11.5%
SPCS retiree medical plan 12.5% 4.5% 4.5%
Pipeline SPCS funeral fill grant plan for retirees 4.5% 4.5% 4.5%
SPCS pension gratuity 4.5% 4.5% 4.5%
Crude SPCS oil, jubilee which benefits is necessary to bring a pipeline into working 4.5% order, is treated 4.5% as a part of the 4.5% related
SPCS periodic additional holiday allow ance 4.5% 4.5% 4.5%
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
necessary Future consumer to the price operation index increases: of a facility during more than one operating cycle, and its cost cannot be
Staatsolie employee pension plan & Executive pension plan 3.0% 3.0% 3.0%
recouped Staatsolie through jubilee benefits sale (or is significantly impaired). This applies 3.0% even if the 3.0% part of inventory 3.0% that is
Staatsolie & SPCS retiree medical plan 11.0% 3.0% 3.0%
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
Staatsolie & SPCS funeral grant plan for retirees 3.0% 3.0% 3.0%
inventory. Staatsolie It & is SPCS valued pension at cost gratuity and is depreciated over the useful 3.0% life of the related 3.0% asset. 3.0%
Staatsolie & SPCS periodic additional holiday allow ance 3.0% 3.0% 3.0%
Supplementary Provision Board members 3.0% 3.0% 3.0%
GOw 2 retiree medical plan 11.0% 10.0% 10.0%
n. Impairment of non-financial assets
GOw 2 jubilee benefits 11.0% 10.0% 10.0%
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
Future salary increases:
If any Staatsolie indication employee exists, pension or when plan & Executive annual impairment pension plantesting for 3.0% an + asset age related is required, merit - for the all Group three years estimates
Staatsolie & SPCS jubilee benefits
3.0% + age related merit - for all three years
the
Staatsolie
asset’s
&
recoverable
SPCS pension
amount.
gratuity
An asset’s recoverable amount
3.0% + age
is the
related
higher
merit -
of
for
an
all three
asset’s
years
or cash
generating Staatsolie & units SPCS (CGU) periodic fair additional value holiday less costs allow ance of disposal and its value in use. It is determined for an
3.0% + age related merit - for all three years
individual Supplementary asset, Provision unless Board the asset members does not generate cash inflows 3.0% + that age related are largely merit - independent for all three years of those
GOw 2 jubilee benefits 26% + merit 26% + merit 21% + merit
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
Healthcare cost increase rate:
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
Staatsolie & SPCS retiree medical plan 13.0% 5.0% 5.0%
assessing GOw 2 retiree value medical in use, planthe estimated future cash flows are discounted 13.0% to their 10.0% present value using 10.0% a pretax
Life discount expectation rate for retirees that reflects at the age current of 60: market assessments Years of the time value Years of money and Years the risks
Staatsolie employee pension plan & Executive pension plan
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
Male 18.4 18.4 17.8
into Female account. If no such transactions can be identified, an appropriate 21.0 valuation 21.0 model is used. 20.7
Post-employment healtcare & other long-term benefit plans
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
Male 18.4 18.4 17.8
in Female those expense categories consistent with the function of 21.0 the impaired asset, 21.0 except for a 20.7 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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