Staatsolie Annual Report 2017

Annual Report 2017 147
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Inventories Dividend to are related stated parties at the lower of cost and net realizable value. Net realizable value is the estimated
selling The Group price made in the an ordinary interim payment, course of subject business, to approval, less estimated regarding costs dividend of completion to their shareholders, and the estimated GoS,
of costs US$ to 6,000 sell. in 2017 regarding fiscal year 2017 (refer to note 6.2).
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
Trade appropriate receivables proportion from of / trade depreciation, payables depletion to shareholder and amortization (GoS) and overheads based on normal
As operating December capacity, 31, determined 2017, the on Group a weighted had a average trade receivable basis. balance of US$ 82,394 due from their
shareholders, while the trade payable balance due to their shareholders was US$ 63,087 (refer to notes
The net realizable value of crude oil and refined products is based on the estimated selling price in the
6.2 and 6.4 respectively).
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make the sale.
Terms and conditions of transactions with related parties
The Materials sales and to and supplies purchases are valued from related using the parties weighted are made average in the cost ordinary method. course of business. There is an
arrangement with GoS for the settlement of the trade receivables from EBS and GoS the outstanding
payables Pipeline fill to GoS.
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
One guarantee has been provided to Ventrin in the amount of US$ 5,500. This guarantee is with the First
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
Caribbean International Bank. For the year ended December 31, 2017 and 2016, the Group has not
necessary to the operation of a facility during more than one operating cycle, and its cost cannot be
recorded any impairment of receivables relating to amounts owed by related parties, except for one
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
related party namely SAIL. The receivable amounted to US$ 1,952 as at December 31, 2017 of which the
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
amount is fully provided. The outstanding amount of Melkcentrale was paid in January 2018.
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
Compensation of key management personnel of the Group:
n. Impairment of non-financial assets
xUS$ 1,000 2017 2016
The Short Group term employee assesses at benefits each reporting date whether there is an indication 2,432 that an asset 2,109 may be impaired.
If Post-employment any indication exists, pension or when and medical annual benefits impairment testing for an asset is 827 required, the 892 Group estimates
Total Compensation paid to key management personnel 3,259 3,001
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
There are no other related party transactions.
individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. 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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