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
ii. On assessing the useful lives of the refinery assets a different depreciation method between IFRS
AFS financial and US investments GAAP was include identified. equity IFRS and requires debt securities. a component Equity depreciation investments approach classified if as components availablefor-sale
of are an those asset neither have classified differing as patterns held-for-trading of benefit, nor whereas designated US GAAP at fair value allowed through depreciation profit or on loss. a
After initial straight measurement, line basis. The AFS component financial depreciation investments approach are subsequently requires that measured each part at of fair an value asset item with
unrealized with gains a cost or losses that is recognized significant in as relation OCI until to the the investment total cost is of derecognized, the item should at which be depreciated time, the
cumulative separately. gain or Under loss is US recognized GAAP a weighted in other average operating of the income useful or lives expense, of the or different the investment components is
determined was to calculated be impaired, (23.25 at which years). time, In addition, the cumulative the turnaround loss is reclassified and inspections to the consolidated (T&I) is scheduled statement in
of profit 2019 or loss which in finance led to costs accelerated and removed depreciation from the for OCI. the assets The Group which evaluates will be replaced. its AFS financial The net impact assets
to determine is that whether accumulated the ability and depreciation intention to amounting sell them in to the US$ near 1,176 term as is at still January appropriate. 1, 2016 and US$
1,534 as at December 31, 2016 were released to the profit and loss/retained earnings.
(ii) Financial liabilities
iii. The “projects in progress” balance was transferred to the individual property, plant and equipment
Recognition and measurement
categories as follows: oil, exploration and production properties US$ 156,837, refining properties
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
US$ 27,426 and other properties and equipment for US$ 31,952 as at January 1, 2016. As at
loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
December 31, 2016, the transferred balances amounted to US$ 131,058 to oil, exploration and
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
production properties, US$ 959 to refining properties and US$ 840 to other properties and
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
equipment. This reclassification is made for the consolidated financial statement disclosure
overdrafts.
purposes.
Loans and borrowings
B. This Investments is the category in associate most relevant and joint to venture the Group. After initial recognition, interest bearing loans and
borrowings i. Under are US subsequently GAAP, Staatsolie measured previously at amortized accounted cost using for its the 25% EIR interest method. in Gains the Suriname and losses Gold are
recognized Project in the CV consolidated (Surgold), statement as a qualifying of profit asset or loss at when net equity the liabilities value, comprising are derecognized of the as purchase well through consideration the EIR amortization and capitalized process. financing Amortized costs. is Under calculated the requirements by taking into of account IFRS, the any investment discount or in
premium Surgold on acquisition classified and as fees a financial or costs asset, that are which an integral is not a qualifying part of the asset EIR. per The IAS EIR 23 amortization and therefore is
included the in finance costs in are the not consolidated allowed to statement be capitalized. of profit Accordingly, loss. This the category capitalized generally finance applies cost of to
interest-bearing US$ 7,529 loans and and US$ borrowings. 12,827 as at January 1, 2016 and December 31, 2016 respectively were
written-off through profit and loss in the respective periods.
m. Inventories
ii. Furthermore, Newmont Mining Corporation, the controlling-interest party in Surgold, performed a
Petroleum products are valued at the lower of cost and net realizable value.
US GAAP to IFRS conversion assessment on its subsidiary Surgold. This assessment resulted in
Raw materials: a slightly different IFRS net income compared to US GAAP. Consequently, Staatsolie adjusted its
• Purchase profit share cost is for valued its investment on weighted in Surgold, average resulting method in a loss of US$ 13 as at January 1, 2016 and
Finished a goods loss of and US$ work 7 as in at progress: December 31, 2016.
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
C. Inventories
operating capacity but excluding borrowing costs
The primary basis of accounting for inventory is cost under both US GAAP and IFRS. As such there are
no differences in cost valuation. Due to convergence, US GAAP measured Inventories similar to IFRS at
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