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Staatsolie Annual Report 2017

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<strong>Annual</strong> <strong>Report</strong> <strong>2017</strong> 145<br />

<strong>Staatsolie</strong> <strong>Staatsolie</strong> Maatschappij Maatschappij Suriname Suriname N.V. N.V.<br />

Notes Notes to to the the Consolidated Consolidated financial financial statements statements for for the the years years ended ended December December 31, 31, <strong>2017</strong> <strong>2017</strong> and and 2016 2016<br />

(continued) (continued)<br />

Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated<br />

Section 7. Group information and related party disclosures<br />

selling price in the ordinary course of business, less estimated costs of completion and the estimated<br />

costs Information to sell. about subsidiaries<br />

The consolidated financial statements of the Group with <strong>Staatsolie</strong> N.V. as the main shareholder includes<br />

The cost of crude oil and refined products is the purchase cost, the cost of refining, including the<br />

the following subsidiaries:<br />

appropriate proportion of depreciation, depletion and amortization and overheads based on normal<br />

operating capacity, determined on a weighted average basis.<br />

Country of in<br />

Subsidiaries Activities<br />

% Equity Interest<br />

The net realizable value of crude oil and refined Corporation products is based on the estimated selling price in the<br />

<strong>2017</strong> 2016<br />

ordinary<br />

GOw2<br />

course of<br />

Distributions<br />

business, less<br />

and<br />

the<br />

Trading<br />

estimated<br />

Suriname<br />

costs of completion and the estimated<br />

100<br />

costs<br />

100<br />

necessary to<br />

make Ventrin the sale.<br />

POC<br />

Distributions and Trading<br />

Exploration activities<br />

Trinidad and Tobago<br />

Suriname<br />

100<br />

100<br />

100<br />

100<br />

Materials SPCS and supplies Electricity are valued Generator using the weighted Surinameaverage cost method. 99.99 99.99<br />

Pipeline POC is at fill this moment a dormant company and activities were put on hold since 2015. The noncontrolling<br />

oil, which interest is in necessary SPCS is not to bring material a pipeline to the Group. into working order, is treated as a part of the related<br />

Crude<br />

pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is<br />

necessary Joint arrangement to the operation in which the of a Group facility is during a joint venture more than one operating cycle, and its cost cannot be<br />

recouped The Group through has a 25% sale interest (or is significantly in Suriname impaired). Gold Project This C.V. applies (2016: even 25%, if January the part 1, of 2016: inventory 25%). that is<br />

deemed to be an item of property, plant and equipment cannot be separated physically from the rest of<br />

During the year, the Group entered into the following transactions, in the ordinary course of business with<br />

inventory. It is valued at cost and is depreciated over the useful life of the related asset.<br />

related parties. These transactions consist of sale and delivery of petroleum products and electricity,<br />

purchase of electricity, and rendering of maritime services from the Maritieme Autoriteit Suriname. The<br />

n. Impairment of non-financial assets<br />

following companies are all state-owned enterprises and therefore are related parties due to the common<br />

The Group assesses at each reporting date whether there is an indication that an asset may be impaired.<br />

ownership:<br />

If any indication exists, or when annual impairment testing for an asset is required, the Group estimates<br />

the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash<br />

N.V. Energie Bedrijven Suriname (EBS)<br />

generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an<br />

Sales of Purchases Trade Trade<br />

individual asset, unless the asset does not generate cash inflows that are largely independent of those<br />

x US$ 1,000 goods of goods receivables payables<br />

from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its<br />

recoverable 2015 amount, 44,894 the asset is considered 5,960 impaired 33,178 and is written 547 down to its recoverable amount. In<br />

2016 32,648 33,293 1,716 334<br />

assessing value in use, the estimated future cash flows are discounted to their present value using a pretax<br />

discount rate that reflects current market assessments of the time value of money and the risks<br />

<strong>2017</strong> 36,168 11,013 16,593 380<br />

specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken<br />

into account. If no such transactions can be identified, an appropriate valuation model is used.<br />

Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss<br />

in those expense categories consistent with the function of the impaired asset, except for a property<br />

previously revalued where the revaluation was taken to OCI. In this case, the impairment is also<br />

recognized in OCI up to the amount of any previous revaluation.<br />

Page 63 145

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