Staatsolie Annual Report 2017

Confidence in Our Own Abilities
140
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Available-for-sale Fair values (AFS) financial investments
AFS Set out financial below investments is a comparison include equity of the and carrying debt securities. amounts and Equity fair investments values of classified the Group’s as availablefor-sale
instruments, are those other neither than those classified with carrying as held-for-trading amounts that nor are designated reasonable at approximations fair value through of fair profit values: or loss.
financial
After initial measurement, AFS financial investments are subsequently measured at fair value with
x US$ 1,000
Carrying amount
As at
Fair value
unrealized gains or losses recognized as OCI until the investment is derecognized, at which time, the
cumulative gain or loss is recognized in other operating January income 1, or expense, or the January investment 1, is
determined to be impaired, at which time, the cumulative loss is reclassified to the consolidated statement
of profit or loss in finance costs and removed from the OCI. The Group evaluates its AFS financial assets
to determine whether the ability and intention to sell them in the near term is still appropriate.
The fair values of the financial liabilities are included at the amount of which the instrument could be
(ii) Financial liabilities
exchanged at the reported date between willing parties, other than in a forced or liquidation sale. The fair
Recognition values of the and financial measurement liabilities are determined based on price quotations at the respective reporting
dates. Financial The liabilities financial are assets classified, of the at Group initial approximate recognition, fair as value financial and liabilities are therefore at fair excluded value through from the profit table or
above. loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
•
value
Local
and,
Bond:
in the case
The
of
fair
loans
value
and
as
borrowings
of each reporting
and payables,
date was
net of
obtained
directly attributable
from the officially
transaction
published
costs.
The
numbers
Group’s
from
financial
the Suriname
liabilities include
stock exchange;
trade and
the
other
official
payables,
exchange
loans
in the
and
country.
borrowings
There
including
is a meeting
bank
overdrafts.
every two weeks where the market price is determined.
• Loan Government of Suriname: The loan was obtained from the proceeds of a government issued
Loans and borrowings
bond in October 2016.The fair value as at December 31, 2016 and 2017 was obtained from the
This is the category most relevant to the Group. After initial recognition, interest bearing loans and
Luxembourg Stock Exchange; the coupon price is implicitly tied to this loan.
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
Financial Assets
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or
AFS financial assets – quoted equity shares
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
The Group has short-term investments in locally listed equity securities of local companies. The fair value
included in finance costs in the consolidated statement of profit or loss. This category generally applies to
of the quoted equity shares is determined by reference to published price quotations in an active market.
interest-bearing loans and borrowings.
x US$ 1,000 2017 2016 As at January 1, 2016
AFS financial assets at fair value through OCI:
m. Inventories
Quoted equity shares 3,838 3,797 6,910
Petroleum Total products are valued at the lower of cost and 3,838 net realizable 3,797 value.
6,910
Raw materials:
• Purchase cost is valued on weighted average method
Finished goods and work in progress:
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
operating capacity but excluding borrowing costs
As at
2017 2016 2016 2017 2016 2016
Financial Liabilities
Local Bond 98,668 98,475 98,281 101,125 99,142 100,133
Loan Government of Suriname 258,412 258,058 - 279,679 260,880 -
Total 357,080 356,533 98,281 380,804 360,022 100,133
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