Staatsolie Annual Report 2017

More documents

Recommendations

Info

Confidence in Our Own Abilities 64 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) Available-for-sale (AFS) financial investments Goodwill is tested for impairment annually as at December 31 and when circumstances indicate that the carrying AFS financial value investments may be impaired. include Impairment equity and debt is determined securities. for Equity goodwill investments by assessing classified the as recoverable availablefor-sale of are each those CGU neither to which classified the goodwill as held-for-trading relates. Where nor the designated recoverable at fair amount value of through the cash-generating profit or loss. amount unit After is initial less than measurement, their carrying AFS amount, financial an investments impairment loss are is subsequently recognized. measured Impairment at losses fair value relating with to unrealized goodwill cannot gains be or reversed losses recognized in future periods. 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 determined o. to Cash be impaired, and short–term at which deposits time, the cumulative loss is reclassified to the consolidated statement of Cash profit and or short-term loss in finance deposits costs in and the removed consolidated from statement the OCI. The of financial Group evaluates position comprise its AFS financial cash at assets banks to and determine on hand whether and short-term the ability deposits and intention with a to maturity sell them of in three the near months term or is less, still appropriate. which are subject to an insignificant risk of changes in value. For the purpose of the consolidated statement cash flows, cash and cash (ii) Financial equivalents liabilities consist of cash and short-term deposits as defined above, net of outstanding bank overdrafts Recognition as and they measurement are considered an integral part of the Group’s cash management. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or Restricted loss, loans Cash and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair Restricted value and, in cash the case is required of loans for and financing borrowings purposes and payables, as this net has of been directly the attributable requirement transaction of Staatsolie’s costs. financiers. The Group’s The financial restricted liabilities accounts include are used trade for and international other payables, collections loans from and our borrowings international including customers bank to overdrafts. deposit their payments. The accounts contain a three months’ worth of debt service and are funded monthly. Every three months interest and principal, if any, is paid out. After the necessary funding has taken Loans place, and borrowings Staatsolie can obtain the remaining cash for its operations. This is the category most relevant to the Group. After initial recognition, interest bearing loans and borrowings p. are Cash subsequently dividend measured at amortized cost using the EIR method. Gains and losses are The recognized Group in recognizes the consolidated a liability statement to make of cash profit distributions or loss when to owners the liabilities of equity are derecognized when the distribution as well as is authorized through the and EIR the amortization distribution process. is no longer Amortized at the cost discretion calculated of the by Group. taking into A corresponding account any discount amount or is recognized premium on directly acquisition in equity. 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 interest-bearing q. Provisions loans and borrowings. General Provisions m. are Inventories recognized when the Group has a present obligation (legal or constructive) as a result of a past Petroleum event, products it is probable are valued that an at the outflow lower of of resources cost and net embodying realizable economic value. benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense Raw materials: relating to a provision is presented in the consolidated statement of profit or loss net of any • Purchase cost is valued on weighted average method reimbursement. If the effect of the time value of money is material, provisions are discounted using a current Finished pre-tax goods rate and that work reflects, in progress: when appropriate, the risks specific to the liability. When discounting is used, • Cost the of increase direct materials in the provision and labor due and to the a proportion passage of time manufacturing is recognized overheads as a finance based cost on normal in the consolidated operating statement capacity but of profit excluding or loss. borrowing costs Page 62 Page 64
Annual Report 2017 65 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 Decommissioning liability selling price in the ordinary course of business, less estimated costs of completion and the estimated The Group recognizes a decommissioning liability where it has a present legal or constructive obligation costs to sell. as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, The cost of and crude a reliable oil and estimate refined of the products amount is of the obligation purchase can cost, be made. the cost of refining, including the appropriate proportion of depreciation, depletion and amortization and overheads based on normal The obligation generally arises when the asset is installed or the ground/environment is disturbed at the operating capacity, determined on a weighted average basis. field location. When the liability is initially recognized, the present value of the estimated costs is capitalized The net realizable by increasing value the of crude carrying oil and amount refined of the products related is oil based assets on to the estimated extent that selling it was price incurred the by the ordinary development/construction course of business, less of the estimated field. Any costs decommissioning of completion and obligations the estimated that costs arise necessary through the to production make the sale. of inventory are expensed when the inventory item is recognized in cost of goods sold. Additional disturbances which arise due to further development/construction at the oil and gas property Materials and supplies are valued using the weighted average cost method. are recognized as additions or charges to the corresponding assets and decommissioning liability when they occur. Costs related to restoration of site damage (subsequent to start of commercial production) Pipeline fill that is created on an ongoing basis during production are provided for at their net present values and Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related recognized in profit or loss as production continues. pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is Changes necessary in to the the estimated operation timing of a or facility cost of during decommissioning more than one are operating dealt with cycle, prospectively and its by cost recording cannot be an adjustment recouped through to the provision sale (or is and significantly a corresponding impaired). adjustment This applies to oil and even gas if the properties. part of inventory Any reduction that in is the deemed decommissioning to be an item liability of property, and, therefore, plant and any equipment deduction cannot from be the separated asset to physically which it relates, from the may rest not of exceed inventory. the It is carrying valued at amount cost and of is that depreciated asset. If over it does, the useful any excess life of the over related the asset. carrying value is taken immediately to the consolidated statement of profit or loss. If the change n. Impairment in estimate of results non-financial increase assets in the decommissioning liability and, therefore, an addition to The the Group carrying assesses value of at each the asset, reporting the Group date whether considers there whether is an indication this is an that indication an asset of impairment may be impaired. of the asset If any as indication a whole, exists, and if or so, when tests annual for impairment. impairment If, for testing mature for fields, an asset the is estimate required, for the the Group revised estimates value of oil the and asset’s gas assets recoverable net of amount. decommissioning An asset’s provisions recoverable exceeds amount the recoverable is the higher value, of an that asset’s portion or of cash the increase generating is charged units (CGU) directly fair to value expense. 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 Over time, the discounted liability is increased for the change in present value based on the discount rate from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its that reflects current market assessments and the risks specific to the liability. The periodic unwinding of recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In the discount is recognized in the consolidated statement of profit or loss as a finance cost. 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 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 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 recognized in OCI up to the amount of any previous revaluation. Page 63 Page 65
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:
Page 14 and 15: Confidence in Our Own Abilities 14
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 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?