Staatsolie Annual Report 2017

Confidence in Our Own Abilities
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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
(continued)
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Available-for-sale (AFS) financial investments
Transactions in foreign currencies are initially recorded by the Group entities at their respective
AFS financial functional investments currency include rate ruling equity at and the debt date securities. of the transaction. Equity investments Monetary classified assets and as availablefor-sale
denominated are those neither in foreign classified currencies as held-for-trading are re-translated nor designated the functional at fair value currency through rate profit exchange or loss.
liabilities
After initial ruling measurement, at the reporting AFS date. 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
Non-monetary assets and liabilities are translated using exchange rates that existed when the
cumulative gain or loss is recognized in other operating income or expense, or the investment is
values were determined. Exchange differences on settlement or translation of monetary items are
determined to be impaired, at which time, the cumulative loss is reclassified to the consolidated statement
recognized in the consolidated statement of profit or loss.
of profit or loss in finance costs and removed from the OCI. The Group evaluates its AFS financial assets
to determine (ii) Foreign whether subsidiaries the ability and intention to sell them in the near term is still appropriate.
As at the reporting date, the assets and liabilities of these subsidiaries are translated into the
(ii) Financial presentation liabilities currency of the Group at the rate of exchange ruling at the reporting date and, their
statements of profit or loss are translated at the weighted average exchange rates for the year.
Recognition and measurement
Non-monetary items that are measured at historical cost in foreign currency are translated using
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
the exchange rates as at the date of the initial transaction. The exchange differences arising on
loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
the translation are taken directly to other comprehensive income. On disposal of a foreign entity,
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
the deferred cumulative amount recognized in equity relating to that particular foreign entity is
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
recognized in the consolidated statement of profit or loss.
overdrafts.
g. Taxes
Loans and borrowings
Current income tax assets and liabilities for the current period are measured at the amount expected to
This is the category most relevant to the Group. After initial recognition, interest bearing loans and
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
amount are those that are enacted, or substantively enacted at the reporting date in the countries where
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
the Group operates and generates taxable income. Current income tax relating to items recognized
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or
directly in equity is recognized in equity and not in the statement of profit or loss. Management
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
included in finance costs in the consolidated statement of profit or loss. This category generally applies to
regulations are subject to interpretation, and establishes provisions where appropriate.
interest-bearing loans and borrowings.
Deferred tax
Deferred m. tax Inventories is provided using the liability method on temporary differences between the tax bases of
Petroleum assets and products liabilities are and valued their carrying at the lower amounts of cost for and financial net realizable reporting value. purposes at the reporting date.
Raw Deferred materials: tax liabilities are recognized for all taxable temporary differences subject to certain specific
• exceptions. Purchase cost is valued on weighted average method
Deferred tax assets are recognized for all deductible temporary differences and carry-forward of unused
Finished goods and work in progress:
tax losses, to the extent that it is probable that future taxable profit will be available against which the
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
temporary differences and carry forward of unused tax losses can be utilized.
operating capacity but excluding borrowing costs
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