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
(continued)
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Available-for-sale (AFS) financial investments
time. The provision was decreased and released to the retained earnings as at January 1, 2016 for
AFS US$ financial 577. investments In 2016 the provision include equity increased and debt with securities. finance charges Equity for investments US$ 149 recorded classified through as availablefor-sale
and are loss. those neither classified as held-for-trading nor designated at fair value through profit or loss.
profit
After initial measurement, AFS financial investments are subsequently measured at fair value with
E. unrealized Employee gains defined or losses benefit recognized liabilities as OCI until the investment is derecognized, at which time, the
IAS cumulative 19 Employee gain or Benefits loss is outlines recognized the accounting other operating requirements income for employee or expense, benefits, or the including investment short-
is
determined benefits, to be post-employment impaired, at which benefits time, the such cumulative as retirement loss is reclassified benefits, other to the long-term consolidated benefits statement and
termination of profit or loss benefits. in finance The standard costs and establishes removed from the the principle OCI. The that Group the cost evaluates of providing its AFS employee financial benefits assets
should to determine be recognized whether the in the ability period and in intention which the to sell benefit them is in earned the near by term the employee, is still appropriate. rather than when it is
paid or payable, and outlines how each category of employee benefits are measured, providing detailed
guidance (ii) Financial particular liabilities about post-employment benefits.
Recognition and measurement
Based Financial on liabilities the above are mentioned classified, criteria, at initial the recognition, following provisions as financial resulted liabilities in re-measurements at fair value through under profit IFRS: or
loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
i. Under both US GAAP and IFRS, Staatsolie maintained the following post-employment benefit plans:
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
1) employee pension plan, 2) directors insured pension plan and 3) retirees medical plan. The
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
calculation of this provision is based on an actuarial evaluation. IAS 19 Employee benefits requires
overdrafts.
actuarial evaluation of these long-term benefits which included a number of variables such as
discount rate assumptions and accounting for actuarial gains and losses. The application of IAS 19
Loans and borrowings
resulted in a decrease in the defined benefit obligation as at January 1, 2016 by US$ 2,443 which is
This is the category most relevant to the Group. After initial recognition, interest bearing loans and
recognized through retained earnings.
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized ii. In addition, in the the consolidated discount rate statement used in of calculating profit or loss the when jubilee the plan liabilities benefits, are derecognized differs between as the well two as
through accounting the EIR standards. amortization This process. resulted Amortized in an increase cost is in calculated the provision by taking of US$ into 540 account as at January any discount 1, 2016 or
premium and US$ on acquisition 552 as at December and fees or 31, costs 2016. that These are amounts an integral were part released of the EIR. to the The profit EIR and amortization loss/retained is
included earnings.
finance costs in the consolidated statement of profit or loss. This category generally applies to
interest-bearing loans and borrowings.
iii. Lastly, the power plant (SPCS) employee savings fund balance of US$ 221 as at December 31, 2016
was m. reclassified Inventories out of employee defined benefits liabilities to accruals and other liabilities.
Petroleum products are valued at the lower of cost and net realizable value.
F. Income tax
Raw materials:
Income tax (expenses) / income and deferred tax asset / liability was recalculated and separately
• Purchase cost is valued on weighted average method
disclosed under section 3.3.
Finished goods and work in progress:
G. • Cost Hyperinflation of direct accounting materials and labor and a proportion of manufacturing overheads based on normal
Suriname operating has capacity been identified but excluding as a hyperinflationary borrowing costs economy based on the three year cumulative inflation
rates of 98% and 108%, measured at year end 2016 and 2017 respectively. Other hyperinflationary
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