Staatsolie Annual Report 2017

Annual Report 2017 139
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Inventories The table below are stated summarizes at the lower the maturity of cost profile and net of the realizable Group’s value. financial Net liabilities realizable as value at December is the estimated 31:
selling price in the ordinary course of business, less estimated costs of completion and the estimated
x US$ 1000 1 year 2 to 4 years > 4 years Total
costs to sell.
The 2017cost of crude oil and refined products is the purchase cost, the cost of refining, including the
appropriate Bond and term proportion loans of 56,820 depreciation, 534,056 depletion and 379,371 amortization 970,247 and overheads based on normal
Trade payable 90,570 - - 90,570
operating capacity, determined on a weighted average basis.
Accrued liabilities 95,709 - - 95,709
The Other net liabilities realizable value of 1,816 crude oil and refined - products - is based on 1,816 the estimated selling price in the
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make 2016 the sale.
Bond and term loans 48,474 523,375 501,007 1,072,856
Materials Trade payable and supplies are 96,618 valued using the weighted - average - cost method. 96,618
Accrued liabilities 87,839 - - 87,839
Pipeline Other liabilities fill
5,441 - - 5,441
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
Credit necessary risk to the operation of a facility during more than one operating cycle, and its cost cannot be
Credit recouped risk through is the risk sale that (or a counter is significantly party will impaired). not meet This its obligations applies even under if a the financial part of instrument inventory leading that is
to deemed a financial to be loss. an item of property, plant and equipment cannot be separated physically from the rest of
The
inventory.
Group
It
trades
is valued
with
at
recognised,
cost and is depreciated
creditworthy
over
third
the
parties.
useful
It
life
is
of
the
the
Group’s
related
policy
asset.
that all customers
who wish to trade on credit terms are subject to credit verification procedures, which include an
assessment
n. Impairment
of credit rating,
of non-financial
short-term liquidity
assets
and financial position. In addition, receivable balances are
monitored
The Group
on
assesses
an on-going
at each
basis
reporting
and GoS
date
receivables
whether there
are settled
is an indication
with GoS
that
payables.
an asset
Note
may
6.2
be
shows
impaired.
an
analysis
If any indication
of the trade
exists,
receivable
or when
ageing.
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
With respect to credit risk arising from the other financial assets of the Group, which comprise cash,
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
short-term investments and short term deposits, the Group’s exposure to credit risk arises from default of
individual asset, unless the asset does not generate cash inflows that are largely independent of those
the counterparty, with a maximum exposure equal to the carrying amount of these instruments.
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
The recoverable maximum amount, exposure the asset to credit is considered risk at the impaired reporting and date is is written the carrying down to value its recoverable of each class amount. of the In
financial assessing assets value disclosed in use, the in estimated section 6.2 future as shown cash below: flows are discounted to their present value using a pretax
discount rate that reflects current market assessments of the time value of As money at January and the 1, risks
specific
x US$ 1,000
to the asset. In determining fair value less costs
2017
of disposal, recent
2016
market transactions
2016
are taken
into
Trade
account.
receivables
If no such transactions can be identified,
107,248
an appropriate valuation
101,878
model is used.
118,319
Impairment
Prepayments
losses
and other
of continuing
current assets
operations are recognized
27,175
in the consolidated
44,472
statement of
43,304
profit or loss
134,423 146,350 161,623
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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