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