Staatsolie Annual Report 2017

Annual Report 2017 145
Staatsolie Staatsolie Maatschappij Maatschappij Suriname Suriname N.V. N.V.
Notes Notes to to the the Consolidated Consolidated financial financial statements statements for for the the years years ended ended December December 31, 31, 2017 2017 and and 2016 2016
(continued) (continued)
Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated
Section 7. Group information and related party disclosures
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs Information to sell. about subsidiaries
The consolidated financial statements of the Group with Staatsolie N.V. as the main shareholder includes
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
the following subsidiaries:
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
operating capacity, determined on a weighted average basis.
Country of in
Subsidiaries Activities
% Equity Interest
The net realizable value of crude oil and refined Corporation products is based on the estimated selling price in the
2017 2016
ordinary
GOw2
course of
Distributions
business, less
and
the
Trading
estimated
Suriname
costs of completion and the estimated
100
costs
100
necessary to
make Ventrin the sale.
POC
Distributions and Trading
Exploration activities
Trinidad and Tobago
Suriname
100
100
100
100
Materials SPCS and supplies Electricity are valued Generator using the weighted Surinameaverage cost method. 99.99 99.99
Pipeline POC is at fill this moment a dormant company and activities were put on hold since 2015. The noncontrolling
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
Crude
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
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
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
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
During the year, the Group entered into the following transactions, in the ordinary course of business with
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
related parties. These transactions consist of sale and delivery of petroleum products and electricity,
purchase of electricity, and rendering of maritime services from the Maritieme Autoriteit Suriname. The
n. Impairment of non-financial assets
following companies are all state-owned enterprises and therefore are related parties due to the common
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
ownership:
If any indication exists, or when 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
N.V. Energie Bedrijven Suriname (EBS)
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
Sales of Purchases Trade Trade
individual asset, unless the asset does not generate cash inflows that are largely independent of those
x US$ 1,000 goods of goods receivables payables
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable 2015 amount, 44,894 the asset is considered 5,960 impaired 33,178 and is written 547 down to its recoverable amount. In
2016 32,648 33,293 1,716 334
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
2017 36,168 11,013 16,593 380
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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