Staatsolie Annual Report 2017

Annual Report 2017 71
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
Group reconciliation of other comprehensive income for the year ended December 31, 2016
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs to sell.
x US$ 1,000
US GAAP
previously
US GAAP
IFRS As at December
The cost of crude oil and refined Notes products audited is Restatements the purchase restated cost, Notes the cost adjustments of refining, 31, including 2016 the
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
Other comprehensive income not to be
operating reclassified to capacity, profit or loss determined on a weighted average basis.
subsequent periods
The Pensions net and realizable other postretirement value of crude oil and refined products is based on the estimated selling price in the
24 (6,556) (4,396) (10,952)
1,845 (9,107)
benefits
I
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
Tax effect 24 2,360 1,162 3,522 I (385) 3,137
make the sale.
(4,196) (3,234) (7,430) 1,460 (5,970)
Net other comprehensive income
Materials (loss) not to and be reclassified supplies to are profit valued or using the (4,196) weighted (3,234) average cost (7,430) method. 1,460 (5,970)
loss in subsequent periods
Pipeline Other comprehensive fill income to be
reclassified to profit or loss in
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
subsequent periods
pipeline. Unrealized gains This and is (losses) on the shortterm
investments
basis that it is not held for sale or consumed in a production process, but is
25 (3,156) 43 (3,113) - (3,113)
necessary to the operation of a facility during more than one operating cycle, and its cost cannot be
Tax effect 25 1,136 (127) 1,009 - 1,009
recouped through sale (or is significantly (2,020) impaired). This (84) applies (2,104) even if the part - of inventory (2,104) that is
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
Currency translation adjustment GOw2 26 (3,159) (12,147) (15,306) - (15,306)
inventory. Tax effect It is valued at cost and is depreciated - over the - useful life - of the related asset. - -
(3,159) (12,147) (15,306) - (15,306)
Net other comprehensive n. Impairment income of non-financial assets
(loss) to be reclassified to profit or loss
(5,179) (12,231) (17,410) - (17,410)
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
in subsequent periods
If Other any comprehensive indication exists, income (loss) or when for annual impairment testing for an asset is required, the Group estimates
(9,375) (15,465) (24,840) 1,460 (23,380)
the year net of tax
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
individual asset, unless the asset does not generate cash inflows that are largely independent of those
from
Notes
other
to the
assets
reconciliation
or groups of
of
assets.
equity
Where
as at January
the carrying
1, 2016
amount
and
of
December
an asset or
31,
CGU
2016
exceeds
and total
its
recoverable
comprehensive
amount,
income
the asset
for the
is
year
considered
ended December
impaired and
31,
is
2016
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
The following restatements and presentation reclassification adjustments were made to the US GAAP
consolidated financial statement (in thousands US$).
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
1 Property, plant and equipment (PP&E)
into account. If no such transactions can be identified, an appropriate valuation model is used.
a. Under US GAAP, Staatsolie has recognized provisions for decommissioning its production field
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
and related facilities, the refinery and the power plant on the basis of discounted expected
in those expense categories consistent with the function of the impaired asset, except for a property
expenditures. Initially an asset for decommissioning was recognized for the same amount, and
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
amortized using the units of production method (UOP). Under the UOP method the asset is
recognized in OCI up to the amount of any previous revaluation.
amortized in proportion to the amount of asset usage, as described in the general notes to the
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