Staatsolie Annual Report 2017

Annual Report 2017 73
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
to (see also note 22). The corresponding entries were recorded through retained earnings and general
selling price in the ordinary course of business, less estimated costs of completion and the estimated
and administrative cost respectively. Moreover oil, exploration and producing properties were
costs to sell.
reclassified for US$ 2,035 (see note 1a above).
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
3. appropriate Restricted proportion cash and cash of depreciation, and short term depletion deposits and amortization and overheads based on normal
a. operating In accordance capacity, determined with US GAAP on a ASC weighted 210 average and IAS basis. 1, cash held in bank accounts which have legal
The restrictions net realizable that value prevent of crude its general oil and use refined also may products be considered is based on restricted. the estimated Staatsolie selling has price restricted in the
ordinary cash course for a period of business, longer less than the a year estimated which costs should of be completion classified and as non-current the estimated assets. costs This necessary was not to
make done the previously, sale. therefore the Group reclassified those amounts from “cash and short term deposits”
as current assets to “restricted cash” as non-current assets for US$ 14,412 and US$ 11,850 as at
Materials and supplies are valued using the weighted average cost method.
January 1, 2016 and December 31, 2016 respectively. In addition, Staatsolie has restricted cash for a
period shorter than a year for US$ 6,444 and US$ 7,370 as at January 1, 2016 and December 31,
Pipeline fill
2016 respectively which should be identified within the consolidated statement of financial position,
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
therefore the Group reclassified those amounts from “cash and short term deposits” to “restricted
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
cash” within the current assets.
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
b. In addition, cash and short-term deposits as at January 1, 2016 and December 31, 2016 was reduced
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
by (US$ 2,576). This adjustment included a reclassification of US$ 750 from prepayments and other
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
current assets (see note 8) to cash and an adjustment of (US$ 3,326) to profit and loss due to a
system conversion error during the migration process from the previous accounting software to SAP.
n. Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
4. If any Investments indication in exists, joint venture or when decreased annual impairment by US$ 3,063 testing as for at January asset 1, is 2016 required, and December the Group estimates 31, 2016,
because
the asset’s
the
recoverable
capital investment
amount.
of POC
An asset’s
has been
recoverable
reclassified
amount
to oil,
is
exploration
the higher
and
of
producing
an asset’s
properties
or cash
(see generating note 1a). 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
5. from Deferred other assets tax liability or groups was recalculated of assets. Where based the on carrying the adjustments amount of and an separately asset or CGU disclosed exceeds under its
section recoverable 3.3. 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
Deferred discount tax rate asset that was reflects recalculated current and market separately assessments disclosed of under the time section value 3.3. of money and the risks
6.
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
7.
into
Trade
account.
receivables
If no such
decreased
transactions
by US$
can be
360
identified,
and US$
an
6,728
appropriate
as at January
valuation
1,
model
2016
is
and
used.
December 31,
2016 respectively. The adjustment as at January 1, 2016 and as at December 31, 2016 included the
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
down payments received from customers amounting to US$ 971 transferred from accrued liabilities and a
in those expense categories consistent with the function of the impaired asset, except for a property
cash payment from our subsidiary POC amounting to (US$ 1,329) reclassified from trade receivables to
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
prepayments and other current assets. As at December 31, 2016 adjustments were made to increase the
recognized in OCI up to the amount of any previous revaluation.
provision for doubtful accounts by (US$ 5,094), reclassify US$ 1,201 to prepayment and other current
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