Staatsolie Annual Report 2017

Annual Report 2017 141
Staatsolie Maatschappij Suriname N.V. N.V.
Notes to the Consolidated financial statements for for the the years years ended ended December December 31, 2017 31, 2017 and 2016 and 2016
(continued)
Inventories Section 6. are Working stated at capital the lower of cost and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs
This section
to sell.
provides additional information that the directors consider is most relevant in understanding
the composition and management of the Group’s working capital:
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
• Cash and short-term deposits (Note 6.1)
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
• Trade and other receivables (Note 6.2)
operating capacity, determined on a weighted average basis.
• Inventories (Note 6.3)
The • net Trade realizable payables, value accruals of crude and oil other and liabilities refined products (Note 6.4) is based on the estimated selling price in the
ordinary
6.1 Cash
course
and
of business,
short–term
less the
deposits
estimated costs of completion and the estimated costs necessary to
make the sale.
As at January 1,
Materials x US$ 1,000 and supplies are valued using the weighted 2017 average cost 2016method.
2016
Cash at banks and on hand 41,005 11,787 25,048
Short-term deposits 5,516 5,584 5,584
Pipeline fill
46,521 17,371 30,632
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
pipeline. Cash at banks This earns is on interest the basis at floating that it rates is not based held on for daily sale interest or consumed rates. Short-term in a production deposits process, are made but is
necessary for varying to periods the operation of between of a one facility day during and more three than months, one depending operating cycle, on the and immediate its cost cash cannot be
recouped
requirements
through
of the Group,
sale (or
and
is
earn
significantly
interest at
impaired).
the respective
This
short-term
applies even
deposit
if
rates.
the part of inventory that is
deemed For the purpose to be an of item the consolidated of property, statement plant and of equipment cash flows, cannot cash be and separated cash equivalents physically comprise from the the rest of
inventory. following: It is valued at cost and is depreciated over the useful life of the related asset.
As at January 1,
x US$ 1,000 2017 2016
2016
n. Impairment of non-financial assets
The Cash Group at banks assesses and on at hand each reporting date 41,005 whether there is 11,787 an indication that an 25,048 asset may be impaired.
Short - term deposits 5,516 5,584 5,584
If Cash any and indication short -term exists, deposits or when annual impairment 46,521 testing for 17,371 an asset is required, 30,632 the Group estimates
the Bank asset’s overdrafts recoverable amount. An asset’s (3,713) recoverable amount (3,713) is the higher (2,560) of an asset’s or cash
Cash and cash equivalents 42,808 13,658 28,072
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those
Restricted cash of US$ 27,462 as at December 31, 2017 of which US$ 10,611 is current (December 31,
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
2016 of US$ 19,220 of which US$ 7,370 is current and January 1, 2016 of US$ 20,856 of which US$
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
6,444 is current) relates to:
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
• Collateral with reference to Staatsolie’s long term loans and funding for interest and loan
(re)payment US$ 11,351.
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
• Collateral with reference to the SPCS loan and funding of interest and loan (re)payment of US$
into account. If no such transactions can be identified, an appropriate valuation model is used.
10,611.
Impairment • Corporate losses parent of guarantees continuing of operations Staatsolie are to secure recognized Ventrin’s the operational consolidated activities statement US$ 5,500. 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
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revaluation.
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