Staatsolie Annual Report 2017

Confidence in Our Own Abilities
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Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Available-for-sale (AFS) financial investments
AFS financial investments include equity and debt securities. Equity investments classified as availablefor-sale
are those neither classified as held-for-trading nor designated at fair value through profit or loss.
After initial measurement, AFS financial investments are subsequently measured at fair value with
unrealized gains or losses recognized as OCI until the investment is derecognized, at which time, the
cumulative gain or loss is recognized in other operating income or expense, or the investment is
determined to be impaired, at which time, the cumulative loss is reclassified to the consolidated statement
of profit or loss in finance costs and removed from the OCI. The Group evaluates its AFS financial assets
to determine whether the ability and intention to sell them in the near term is still appropriate.
(ii) Financial liabilities
Recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included in finance costs in the consolidated statement of profit or loss. This category generally applies to
interest-bearing loans and borrowings.
m. Inventories
Petroleum products are valued at the lower of cost and net realizable value.
Raw materials:
• Purchase cost is valued on weighted average method
Finished goods and work in progress:
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
operating capacity but excluding borrowing costs
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