Staatsolie Annual Report 2017

More documents

Recommendations

Info

Confidence in Our Own Abilities 60 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 i. Leases AFS The determination financial investments of whether include an arrangement equity and debt is, or securities. contains, Equity a lease investments is based on classified the substance as availablefor-sale arrangement are those at the neither inception classified date. as held-for-trading The arrangement nor designated is assessed at fair for value whether through fulfillment profit or of loss. the of the After arrangement initial measurement, is dependent on AFS the financial use of a specific investments asset are or assets subsequently or the arrangement measured at conveys fair value a right with to unrealized use the asset gains or assets, or losses even recognized if the asset as (or OCI assets until are) the is investment not explicitly is specified derecognized, in an arrangement. at which time, the cumulative Group as a lessee gain or loss is recognized in other operating income or expense, or the investment is determined Finance leases to be that impaired, transfer at to which the Group time, substantially the cumulative all loss of the is reclassified risks and benefits to the consolidated incidental to ownership statement of profit the leased or loss item, in finance are capitalized costs and removed at the commencement from the OCI. The of the Group lease evaluates at the fair its AFS value financial of the leased assets to property determine or, whether if lower, the at ability the present and intention value to of sell the them minimum the near lease term payments. is still appropriate. Lease payments are apportioned between finance charges and a reduction in the lease liability so as to achieve a constant (ii) rate Financial of interest liabilities on the remaining balance of the liability. Finance charges are recognized in finance costs Recognition in the consolidated and measurement statement of profit or loss. Financial A leased asset liabilities is depreciated are classified, over at the initial useful recognition, life of the asset. financial However, liabilities if there at fair is no value reasonable through certainty profit or loss, that the loans Group and borrowings, will obtain ownership payables, by as appropriate. the end of the All financial lease term, liabilities the asset are recognized is depreciated initially over at the fair value shorter and, of the in the estimated case of useful loans and life of borrowings the asset and payables, the lease net term. of directly The Group attributable has concluded transaction that costs. there The are no Group’s finance financial leases as liabilities at December include 31, trade 2017 and and other 2016. payables, loans and borrowings including bank overdrafts. An operating lease is a lease other than a finance lease. Operating lease payments are recognized as an operating expense in the consolidated statement of profit or loss on a straight-line basis over the lease Loans term. and borrowings This is the category most relevant to the Group. After initial recognition, interest bearing loans and borrowings j. are Borrowing subsequently costs measured at amortized cost using the EIR method. Gains and losses are recognized Borrowing costs in the directly consolidated attributable statement to of the profit acquisition, or loss when construction the liabilities or production are derecognized of an asset well that as through necessarily the takes EIR amortization a substantial process. period Amortized of time to get cost ready is calculated for its intended by taking use into or account sale are any capitalized discount as or premium part of the on cost acquisition of the respective and fees asset. or costs All other that are borrowing an integral costs part are expensed of the EIR. in The the period EIR amortization in which they is included occur. Borrowing finance costs consist in the consolidated of interest and statement other costs of profit that or an loss. entity This incurs category in connection generally applies with the to interest-bearing borrowing of funds. loans Borrowing and borrowings. costs incurred on or after the date of transition for all eligible qualifying assets are capitalized. m. Inventories Petroleum k. products Intangible are assets valued at the lower of cost and net realizable value. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible Raw materials: assets acquired in a business combination is their fair value as at the date of acquisition. Following initial • Purchase cost is valued on weighted average method recognition, intangible assets are carried at cost less accumulated amortization and accumulated Finished impairment goods losses, and work if any. in progress: Internally generated intangible assets, excluding capitalized development • costs, Cost are of not direct capitalized. materials Instead, and labor the related and a expenditure proportion of is manufacturing recognized the overheads consolidated based statement on normal of profit operating or loss when capacity is but incurred. excluding The borrowing useful lives costs of intangible assets are assessed as either finite or Page 62 Page 60
Annual Report 2017 61 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 indefinite. Intangible assets with finite lives are amortized over their useful economic lives and assessed selling price in the ordinary course of business, less estimated costs of completion and the estimated for impairment whenever there is an indication that the intangible asset may be impaired. costs to sell. The amortization period and the amortization method for an intangible asset with a finite useful life are The cost of crude oil and refined products is the purchase cost, the cost of refining, including the reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected appropriate proportion of depreciation, depletion and amortization and overheads based on normal pattern of consumption of future economic benefits embodied in the asset are accounted for by changing operating capacity, determined on a weighted average basis. the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The net amortization realizable expense value of crude on intangible oil and refined assets products with finite is based lives on is the recognized estimated in selling the consolidated price in the statement ordinary course of profit business, or loss less the expense the estimated category costs consistent of completion with and the function the estimated of the costs intangible necessary assets. to Intangible make the sale. assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed Materials and supplies are valued using the weighted average cost method. annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains or losses arising from de-recognition of Pipeline fill an intangible asset are measured as the difference between the net disposal proceeds and the carrying Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related amount of the asset and are recognized in the consolidated statement of profit or loss when the asset is pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is derecognized. necessary to the operation of a facility during more than one operating cycle, and its cost cannot be recouped through sale (or is significantly impaired). This applies even if the part of inventory that is l. Financial instruments – recognition and measurement deemed to be an item of property, plant and equipment cannot be separated physically from the rest of A financial instrument is any contract that gives rise to a financial asset of one entity and a financial inventory. It is valued at cost and is depreciated over the useful life of the related asset. liability or equity instrument of another entity. n. Impairment of non-financial assets (i) Financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. Recognition and measurement If any indication exists, or when annual impairment testing for an asset is required, the Group estimates Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash loans and receivables, held-to-maturity investments, available-for-sale financial assets, as appropriate. generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an The Group determines the classification of its financial assets at initial recognition. All financial assets are individual asset, unless the asset does not generate cash inflows that are largely independent of those recognized initially at fair value plus, in the case of assets not at fair value through profit or loss, from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its transaction costs that are attributable to the acquisition of the financial asset. 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 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken not quoted in an active market. After initial measurement, such financial assets are subsequently into account. If no such transactions can be identified, an appropriate valuation model is used. measured at amortized cost using the effective interest rate (EIR) method, less impairment. Amortized Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are in those expense categories consistent with the function of the impaired asset, except for a property an integral part of the EIR. The EIR amortization is included in finance income in the consolidated previously revalued where the revaluation was taken to OCI. In this case, the impairment is also statement of profit or loss. recognized in OCI up to the amount of any previous revaluation. Page 63 Page 61
Page 1:
Staatsolie Maatschappij Suriname N.
Page 4 and 5:
Confidence in Our Own Abilities Vis
Page 6 and 7:
Confidence in Our Own Abilities Sup
Page 8 and 9:
Confidence in Our Own Abilities 8 G
Page 10 and 11: Confidence in Our Own Abilities 10
Page 44 and 45: Confidence in Our Own Abilities Not
Page 46 and 47: Confidence in Our Own Abilities 6.2
Page 68 and 69: Page 68 Confidence in Our Own Abili
Page 105: Annual Report 2017 104 Staatsolie M
Page 111 and 112:
Confidence in Our Own Abilities 108
Page 113 and 114:
Page 116 and 117:
Page 118 and 119:
Page 121 and 122:
Page 123:
Annual Report 2017 118 Staatsolie M
Page 126:
Annual Report 2017 120 Staatsolie M
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161:
Contact Information Head Office Dr.
show all

Staatsolie Annual Report 2017

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?