Staatsolie Annual Report 2017

Annual Report 2017 127
Staatsolie
Staatsolie
Maatschappij
Maatschappij
Suriname
Suriname
N.V.
N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
(continued)
Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated
Executive pension plan
selling price in the ordinary course of business, less estimated costs of completion and the estimated
The effect of a 1 percentage point change in the assumed discount rate and the assumed salary
costs to sell.
increases on the defined benefit obligation are:
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
Assumptions Discount rate
Future salary increases
appropriate Sensitivityproportion 1% of depreciation, 1% depletion and 1% amortization 1% and overheads based on normal
operating level capacity, Increase determined on Decrease a weighted average Increase basis. Decrease
2017 (595,536) 728,625 234,617 (220,421)
The net 2016 realizable value (554,220) of crude oil 681,790 and refined products 245,949 is based (229,740) on the estimated selling price in the
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make Staatsolie the sale. medical retiree plan
The effect of a 1 percentage point change in the assumed discount rate and assumed medical cost
Materials and supplies are valued using the weighted average cost method.
inflation on the defined benefit obligation are:
Assumptions Discount rate
Medical cost inflation
Pipeline fill
1%
1%
1%
1%
Crude Sensitivity oil, which levelis necessary Increaseto bring Decrease a pipeline into working Increase order, is treated Decrease as a part of the related
pipeline. 2017 This is on the (3,561,356) basis that it is 4,669,039 not held for sale 4,452,180 or consumed in (3,478,493)
a production process, but is
necessary 2016 to the operation (3,928,231) of a facility 5,186,001 during more than 5,101,720 one operating cycle, (3,944,694) and its cost cannot be
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
GOw2 medical retiree plan
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
The effect of a 1 percentage point change in the assumed discount rate and assumed medical cost
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
inflation on the defined benefit obligation are:
Assumptions Discount rate Medical cost inflation
n. Impairment of non-financial assets
1% 1%
1% 1%
The
Sensitivity
Group assesses
level
at Increase each reporting Decrease date whether there Increase is an indication Decrease that an asset may be impaired.
If any indication 2017 exists, or (78,229) when annual 100,826 impairment testing 95,850 for an asset (76,144) is required, the Group estimates
2016 (68,814) 88,795 84,397 (66,986)
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
generating SPCS medical units retiree (CGU) plan fair value less costs of disposal and its value in use. It is determined for an
individual The effect asset, of a 1 unless percentage the asset point does change not generate in the assumed cash inflows discount that rate are largely and assumed independent medical of those cost
from
inflation
other
on
assets
the defined
or groups
benefit
of
obligation
assets. Where
are:
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
Assumptions Discount rate Medical cost inflation
assessing value in use, the 1% estimated 1% future cash flows 1% are discounted 1% to their present value using a pretax
discount rate that
Sensitivity level
Increase
reflects current
Decrease
market assessments
Increase
of
Decrease
the time value of money and the risks
2017 (63,971) 91,495 88,073 (63,179)
specific 2016 to the asset. In determining (61,980) fair 90,249 value less costs 87,246 of disposal, (61,461) 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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