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
The Group applied amendments retrospectively. However, the amendments have no effect on the
Group’s AFS financial financial investments position and include performance equity and as debt the securities. Group has Equity no deductible investments temporary classified differences as availablefor-sale
that are are those in the neither scope classified of the amendments.
as held-for-trading nor designated at fair value through profit or loss.
or
assets
After initial measurement, AFS financial investments are subsequently measured at fair value with
Amendments unrealized gains to or IFRS losses 12 recognized Disclosure as of OCI Interests until the in Other investment Entities: is derecognized, Clarification at of which the scope time, the of
disclosure cumulative requirements gain or loss is in recognized IFRS 12 in other operating income or expense, or the investment is
The determined amendments to be impaired, clarify that which the disclosure time, the cumulative requirements loss in is IFRS reclassified 12, other to the than consolidated those in paragraphs statement
B10–B16, of profit or apply loss in to finance entity’s costs interest and removed in a subsidiary, from the OCI. a joint The venture Group or evaluates an associate its AFS (or financial a portion assets of its
interest to determine a whether joint venture the ability or an and associate) intention to that sell is them classified in the near (or included term is still in appropriate.
a disposal group that is
classified) as held for sale. As at December 31, 2017 the Group classified its interest in Suriname Gold
Project (ii) Financial CV, a liabilities 25% participating interest, as a joint venture (see Note 4.4), but these amendments did not
affect Recognition the Group’s and measurement
consolidated financial statements.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
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.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included in finance costs in the consolidated statement of profit or loss. This category generally applies to
interest-bearing loans and borrowings.
m. Inventories
Petroleum products are valued at the lower of cost and net realizable value.
Raw materials:
• Purchase cost is valued on weighted average method
Finished goods and work in progress:
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
operating capacity but excluding borrowing costs
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