Staatsolie Annual Report 2017

Annual Report 2017 53
Staatsolie Maatschappij Suriname N.V.
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
Notes (continued) to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated
e. Revenue and other income
selling price in the ordinary course of business, less estimated costs of completion and the estimated
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group
costs to sell.
and the revenue can be reliably measured, regardless of when the payment is received. Revenue is
measured The cost of at crude the fair oil value and of refined the consideration products is received the purchase or receivable, cost, the taking cost into of refining, account including contractually the
defined appropriate terms proportion of payment of and depreciation, excluding depletion taxes or duty. and amortization Revenue from and the overheads sale of goods based is recognized on normal
when operating the capacity, significant determined risks and rewards on a weighted of ownership average of basis. the goods have passed to the buyer, usually on
delivery The net of realizable the goods. value Revenue of crude from oil the and sale refined of goods products is measured is based on at the the fair estimated value of selling the consideration
price in the
received ordinary course or receivable, of business, net of less returns the and estimated allowances, costs of trade completion discounts and and the volume estimated rebates. costs necessary to
Revenue make the from sale. the sale of oil products is recognized when the significant risks and rewards of ownership
have Materials been and transferred, supplies are which valued is considered using the weighted to occur average when title cost passes method. to the customer. This generally
occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism.
Revenues Pipeline fill are recorded from the sales of thermal energy when the product is delivered at a fixed or
determinable Crude oil, which price, is title necessary has transferred to bring and a pipeline collectability into working is reasonably order, assured. 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
Sales between group companies, as disclosed in the operating segment information, are based on prices
necessary to the operation of a facility during more than one operating cycle, and its cost cannot be
generally equivalent to commercially available prices.
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
Interest income
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
For all financial instruments measured at amortized cost, interest income is recorded using the effective
interest rate (“EIR”). The EIR is the rate that exactly discounts the estimated future cash receipts over the
n. Impairment of non-financial assets
expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
of the financial asset. Interest income is included in finance income in the statement of profit or loss.
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
Dividends
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
Revenue is recognized when the Group’s right to receive the payment is established, which is generally
individual asset, unless the asset does not generate cash inflows that are largely independent of those
when shareholders approve the dividend.
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable f. Foreign amount, currencies the asset is considered impaired and is written down to its recoverable amount. In
assessing The consolidated value in financial use, the statements estimated future are presented cash flows in are United discounted States to dollars their present (US$), value which using is also a pretax
Group’s discount functional rate that currency reflects and current presentation market assessments currency. Each of entity the time in the value Group of money determines and the its risks own
the
specific functional to currency the asset. and In determining items included fair value in the less financial costs statements of disposal, of recent each market entity is transactions measured using are taken that
into functional account. currency. If no such Within transactions the Group, can GOw2 be identified, can be considered an appropriate as foreign valuation operations, model is used. whose functional
Impairment currency changed losses of from continuing US$ to operations the Surinamese are recognized dollars (SRD) in the effective consolidated January statement 1, 2016. of This profit change or loss
in arose those due expense to the change categories in major consistent contracts with the previously function denominated of the impaired in US$ asset, to SRD. except Therefore, a property as it
relates previously to GOw2, revalued transactions where the are revaluation initially recorded was taken in the to functional OCI. In currency this case, (being the SRD) impairment at the is rate also of
exchange recognized ruling OCI at up the to date the of amount the transaction. of any previous revaluation.
(i) Transactions and balances
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