Staatsolie Annual Report 2017

Annual Report 2017 143
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Inventories determining are stated the recoverability at the lower of of a cost trade and or net other realizable receivable, value. the Net Group realizable performs value is a the risk estimated analysis
selling considering price the in the type ordinary and age course of the outstanding of business, receivable less estimated and the costs creditworthiness of completion of the and counterparties.
the estimated
costs to sell.
Prepaid expenses and other current assets consisted of the following:
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
appropriate proportion of depreciation, depletion and amortization and overheads As at January based 1, on normal
x US$ 1,000 2017 2016
2016
operating capacity, determined on a weighted average basis.
Receivable from personnel 18 10 440
The net realizable value of crude oil and refined products is based on the estimated selling price in the
Prepaid to puchasing agents - - 750
ordinary Prepaid insurance course of costs business, less the estimated costs of completion 805 and the 916 estimated costs 832 necessary to
make Receivable the sale. from Surgold - 8,660 -
Interim dividend 6,000 - -
Materials Downpayment and supplies vendors are valued using the weighted average 4,246cost method. 12,631 16,630
Prepaid purchased goods, services and other 8,714 4,562 5,407
Net sales tax receivable 7,392 17,693 19,245
Pipeline fill
27,175 44,472 43,304
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
necessary
6.3 Inventories
to the operation of a facility during more than one operating cycle, and its cost cannot be
recouped through sale (or is significantly impaired). This applies even if the part As of at January inventory 1, that is
deemed x US$ 1,000 to be an item of property, plant and equipment 2017 cannot be separated 2016physically from 2016 the rest of
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
Petroleum products 3,089 22,943 20,829
Materials and supplies 58,674 39,755 43,699
Ordered
n.
goods
Impairment of non-financial assets
461 3,171 7,861
Carrying value at NRV 62,224 65,869 72,389
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates
During 2017, US$ 950 was recognized as an expense for inventories to recognize a provision for
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
obsolete inventories. During 2016 US$ 194 was released from the provision for obsolete inventories.
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
individual During 2017, asset, US$ unless 236,866 the (2016: asset US$ does 242,163) not generate was recognized cash inflows as that an expense are largely for independent inventories carried of those at
from cost. This other is assets recognized or groups in cost of of assets. sales. Where 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
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
specific to the asset. In determining fair value less costs of disposal, 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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