Staatsolie Annual Report 2017

More documents

Recommendations

Info

Confidence in Our Own Abilities 62 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 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. 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 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 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 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 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 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. to determine whether the ability and intention to sell them in the near term is still appropriate. (ii) Financial liabilities (ii) Financial liabilities Recognition and measurement Recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or 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 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. 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 The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts. overdrafts. Loans and borrowings Loans and borrowings This is the category most relevant to the Group. After initial recognition, interest bearing loans and 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 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 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 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 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 included in finance costs in the consolidated statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. interest-bearing loans and borrowings. m. Inventories m. Inventories Petroleum products are valued at the lower of cost and net realizable value. Petroleum products are valued at the lower of cost and net realizable value. Raw materials: Raw materials: • Purchase cost is valued on weighted average method • Purchase cost is valued on weighted average method Finished goods and work in progress: Finished goods and work in progress: • Cost of direct materials and labor and a proportion of manufacturing overheads based on normal • Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs operating capacity but excluding borrowing costs Page 62 Page 62
Annual Report 2017 63 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) Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs to sell. costs to sell. The cost of crude oil and refined products is the purchase cost, the cost of refining, including the The cost of crude oil and refined products is the purchase cost, the cost of refining, including the appropriate proportion of depreciation, depletion and amortization and overheads based on normal appropriate proportion of depreciation, depletion and amortization and overheads based on normal operating capacity, determined on a weighted average basis. operating capacity, determined on a weighted average basis. The net realizable value of crude oil and refined products is based on the estimated selling price in the The net realizable value of crude oil and refined products is based on the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. make the sale. Materials and supplies are valued using the weighted average cost method. Materials and supplies are valued using the weighted average cost method. Pipeline fill Pipeline fill Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related Crude oil, which is necessary to bring a pipeline into working order, 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 pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is necessary to the operation of a facility during more than one operating cycle, and its cost cannot be 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 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 deemed to be an item of property, plant and equipment cannot be separated physically from the rest of inventory. It is valued at cost and is depreciated over the useful life of the related asset. inventory. It is valued at cost and is depreciated over the useful life of the related asset. n. Impairment of non-financial assets n. Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates 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 the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In 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 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 specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss in those expense categories consistent with the function of the impaired asset, except for a property in those expense categories consistent with the function of the impaired asset, except for a property previously revalued where the revaluation was taken to OCI. In this case, the impairment is also previously revalued where the revaluation was taken to OCI. In this case, the impairment is also recognized in OCI up to the amount of any previous revaluation. recognized in OCI up to the amount of any previous revaluation. Page 63 Page 63
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 12 and 13: Confidence in Our Own Abilities 12
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 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

Create successful ePaper yourself

Delete template?

Save as template?