Staatsolie Annual Report 2017

Confidence in Our Own Abilities
82
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
2.5 Significant accounting judgments, estimates and assumptions
AFS financial investments include equity and debt securities. Equity investments classified as availablefor-sale
are those neither classified as held-for-trading nor designated at fair value through profit or loss.
The preparation of the Group’s consolidated financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
After initial measurement, AFS financial investments are subsequently measured at fair value with
and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
unrealized gains or losses recognized as OCI until the investment is derecognized, at which time, the
about these assumptions and estimates could result in outcomes that require a material adjustment to the
cumulative gain or loss is recognized in other operating income or expense, or the investment is
carrying amount of asset or liability affected in future periods.
determined to be impaired, at which time, the cumulative loss is reclassified to the consolidated statement
of
Judgments
profit or loss in finance costs and removed from the OCI. The Group evaluates its AFS financial assets
to
In
determine
the process
whether
of applying
the ability
the
and
Group’s
intention
accounting
to sell them
policies,
in the near
management
term is still appropriate.
has made the following
judgments, which have the most significant effect on the amounts recognized in the consolidated financial
(ii)
statements:
Financial liabilities
Recognition and measurement
Operating lease commitments — group as lessee
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
The Group has entered into commercial car and vessel leases. The Group has determined, based on an
loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair
evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
substantial portion of the economic life of the cars and vessels, and the present value of the minimum
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
lease payments not amounting to substantially all of the fair value of the cars and vessels, that it does not
overdrafts.
retain all the significant risks and rewards of ownership of these cars and vessels, and accounts for the
contracts as operating leases.
Loans and borrowings
This
Investment
is the
in
category
Joint Venture
most relevant to the Group. After initial recognition, interest bearing loans and
borrowings
Judgment is
are
required
subsequently
to determine
measured
when
at
the
amortized
Group has
cost
joint
using
control
the
over
EIR
an
method.
arrangement,
Gains and
which
losses
requires
are
recognized
an assessment
in the
of
consolidated
the relevant
statement
activities
of
and
profit
when
or loss
the decisions
when the liabilities
in relation
are
to
derecognized
those activities
as well
require
as
through
unanimous
the
consent.
EIR amortization
The Group
process.
has determined
Amortized
that
cost
the
is calculated
relevant activities
by taking
for
into
its
account
joint arrangements
any discount
are
or
premium
those relating
on acquisition
to the operating
and fees
and
or
capital
costs that
decisions
are an
of
integral
the arrangement,
part of the EIR.
including
The
the
EIR
approval
amortization
of the
is
included
annual capital
in finance
and
costs
operating
in the
expenditure
consolidated
work
statement
program
of profit
and budget
or loss.
for
This
the
category
joint arrangement,
generally applies
and the
to
interest-bearing
approval of chosen
loans
service
and borrowings.
providers for any major capital expenditure as required by the joint operating
agreements applicable to the entity’s joint arrangements. The considerations made in determining joint
control are
m.
similar
Inventories
to those necessary to determine control over subsidiaries, as set out in Note 2.3b.
Petroleum
Judgment is
products
also required
are valued
to classify
at the
a
lower
joint
of
arrangement.
cost and net
Classifying
realizable value.
the arrangement requires the Group
Raw to assess materials: their rights and obligations arising from the arrangement. Specifically, the Group considers:
• Purchase • The structure cost is valued of the joint on weighted arrangement average – whether method it is structured through a separate vehicle
Finished • When goods the and arrangement work in progress: is structured through a separate vehicle, the Group also considers the
• Cost
rights
of direct
and obligations
materials and
arising
labor
from:
and a proportion of manufacturing overheads based on normal
operating
-
capacity
The legal
but
form
excluding
of the
borrowing
separate vehicle
costs
- The terms of the contractual arrangement
- Other facts and circumstances, considered on a case by case basis
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