Staatsolie Annual Report 2017

Confidence in Our Own Abilities
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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
18. Cost of sales
Apart AFS financial from the investments profit or loss include presentation equity and reclassifications debt securities. (see Equity note investments 17), there classified was a decrease availablefor-sale
are to the those refinery neither expenses classified amounting as held-for-trading to US$ 3,855. nor designated Furthermore at fair there value was through an increase profit or in loss. the
with
regards
production After initial expenses measurement, of US$ AFS 1,957. financial The corresponding investments entries are subsequently for both items measured were recorded at fair through value cost with
of unrealized sales. 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
19. determined Other income to be impaired, / expense at which time, the cumulative loss is reclassified to the consolidated statement
The of profit decrease or loss of in US$ finance 389 costs relates and to removed a profit of from US$ the 2,742 OCI. in The SurGold Group GoS evaluates share and its AFS a (US$ financial 3,131) assets loss
caused to determine by a write-off whether of the freight ability costs and intention and uncollectable to sell them down in the payments. near term There is still was appropriate. also a reclassification
of foreign exchange gains of US$ 12,905 from finance cost to other income / expenses in 2016.
(ii) Financial liabilities
20. Selling and distribution costs
Recognition and measurement
The increase of US$ 3,077 was mainly caused by a provision made for doubtful accounts for
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
prepayments to vendors. The total provision made as at December 31, 2016 amounted to US$ 3,699.
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.
21. The Other Group’s operating financial expenses liabilities include trade and other payables, loans and borrowings including bank
The overdrafts. major part of the other operating expenses was reclassified to “Cost of sales”.
22. Loans General and borrowings and administrative expenses
Within This is this the category the most Group relevant had a to release the Group. of a provision After initial with recognition, regards to study interest grants bearing of US$ loans 1,413. and
The borrowings other changes are subsequently to general and measured administrative at amortized expenses cost were using mentioned the EIR method. above. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
23. through Finance the EIR income amortization and costs process. Amortized cost is calculated by taking into account any discount or
The premium increase on acquisition in finance income and fees of or US$ costs 30 is that caused are an by integral the currency part of translation the EIR. adjustment The EIR amortization from GOw2. is
The included increase finance finance costs cost in the is caused consolidated by the statement accretion of expense profit or of loss. the This dismantlement category generally assets amounting applies to
to interest-bearing US$ 6,516. In loans addition, and borrowings. there was an increase in finance cost due to the reclassification of foreign
currency gains to other income / expenses of US$ 12,905 in 2016.
m. Inventories
24. Petroleum Pensions products and other are postretirement valued at the lower benefits of cost – other and comprehensive net realizable value. income
The restatement of US$ 4,396 in 2016 relates to evaluation of the pension plans and the introduction of
Raw materials:
the actuarial evaluation of other long term employee benefits such as jubilee plan, funeral grant plan,
• Purchase cost is valued on weighted average method
additional holiday allowance and pension gratuity plan. The other long term employee benefits plans are
also Finished new goods for the and subsidiaries work in progress: SPCS and GOw2. The tax effect of US$ 1,162 is the 32.4% tax impact on
the • restatement Cost of direct amount materials of US$ and 4,396 labor and and the a effect proportion of the of adjustment manufacturing of the overheads tax rate from based 36% on to 32.4% normal
on the operating total unrealized capacity (gains) but excluding and losses borrowing on the costs short term investments.
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