Staatsolie Annual Report 2017

Annual Report 2017 75
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
plans. Adjustments of US$ 893 and US$ 513 were made as at January 1, 2016 and December 31, 2016
selling price in the ordinary course of business, less estimated costs of completion and the estimated
respectively to record the provision related to the GOw2 employee benefit plans.
costs to sell.
11. The The cost accruals of crude and oil other and liabilities refined products were (decreased) is the purchase / increased cost, by the (US$ cost 2,509) of refining, and US$ including 1,743 as the at
January appropriate 1, 2016 proportion and December of depreciation, 31, 2016, depletion respectively. and The amortization decrease and of (US$ overheads 2,509) relates based primarily on normal to
the operating settlement capacity, of the determined liability for on the a weighted land that average was sold basis. to EBS NV (see note 1c). The net increase of
US$
The net
1,743
realizable
as at December
value of crude
31, 2016
oil and
relates
refined
to an
products
increase
is
in
based
GOw2
on
of
the
US$
estimated
1,532 relating
selling
to
price
currency
in the
translation
ordinary course
adjustment
of business,
coupled
less
with
the estimated
a reduction
costs
in
of
Staatsolie
completion
and
and
SPCS
the estimated
of US$ 61
costs
and
necessary
US$ 222
to
respectively
make the sale.
related to a reclassification. Furthermore an adjustment was made related to an under
accrual of personnel costs which resulted in an increase of US$ 492 which was recognized in general and
Materials and supplies are valued using the weighted average cost method.
administrative expenses.
Pipeline fill
12. Income tax expense and the related income tax payable was recalculated for the adjustments made
Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related
and separately disclosed in section 3.3.
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
13. Inventories (namely materials and supplies) decreased as at December 31, 2016 by (US$ 1,273) due
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
to the fact that import and transportation costs that were not attributable to purchased materials were
expensed. deemed to This be an was item recorded of property, in other plant income and / equipment expenses. 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.
14. The short-term investment in shares of Hakrinbank and Assuria increased by US$ 40 as at December
n. Impairment of non-financial assets
31, 2016 due to revaluations.
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
15. Reclassification of the provision for sales and wage tax amounting to US$ 5,082 from other long-term
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
liabilities to prepayments and other current assets as at December 31, 2016.
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
16. Trade payables increased as at December 31, 2016 by US$ 4,624 due to a write-off of a down
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
payment to a vendor of US$ 1,277, increase due to intercompany adjustments of US$ 4,206 and the
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
effects of currency translation adjustment of GOw2 resulting in a decrease of (US$ 860). The
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
corresponding entries as it relates to the write down of payments to vendor and intercompany adjustment
were recorded through other income / expenses whereas the currency adjustment was recorded through
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
general and administrative expenses.
into account. If no such transactions can be identified, an appropriate valuation model is used.
17.
Impairment
Consolidated
losses
statement
of continuing
of profit
operations
or loss presentation
are recognized in the consolidated statement of profit or loss
Converting in those expense the presentation categories of consistent the US GAAP with the audited function statement of the of impaired profit or asset, loss from except a presentation for a property by
“nature” previously to a revalued presentation where by the “function” revaluation caused was the taken majority to of OCI. the amounts In this case, in the the “re-statement” impairment column. is also
These recognized adjustments in OCI up do to not the have amount any impact of any previous on the profit revaluation. or loss for the year.
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