29.01.2019 Views

Staatsolie Annual Report 2017

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>Annual</strong> <strong>Report</strong> <strong>2017</strong> 95<br />

<strong>Staatsolie</strong> Maatschappij Suriname N.V.<br />

<strong>Staatsolie</strong> Maatschappij Suriname N.V.<br />

Notes to the Consolidated financial statements for the years ended December 31, <strong>2017</strong> and 2016<br />

(continued)<br />

Notes to the Consolidated financial statements for the years ended December 31, <strong>2017</strong> and 2016<br />

(continued)<br />

Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated<br />

Components of Revenue<br />

selling price in the ordinary course of business, less estimated costs of completion and the estimated<br />

costs to sell.<br />

xUS$ 1,000 <strong>2017</strong> 2016<br />

The Own cost refined of products crude oil (gross) and refined products 368,595 is the purchase 259,800 cost, the cost of refining, including the<br />

appropriate Intersegment proportion sales of depreciation, (129,923) depletion and amortization (103,464) and overheads based on normal<br />

Local refined products (net) 238,672 156,336<br />

operating capacity, determined on a weighted average basis.<br />

The Trading net activities realizable (gross) value of crude oil and 156,899 refined products 170,598 is based on the estimated selling price in the<br />

Intersegment sales (10,581) (12,067)<br />

ordinary course of business, less the estimated costs of completion and the estimated costs necessary to<br />

Trading activities (net) 146,318 158,531<br />

make the sale.<br />

Materials<br />

Electric energy<br />

and supplies<br />

(gross)<br />

are valued using the<br />

64,189<br />

weighted average<br />

50,094<br />

cost method.<br />

Intersegment sales (15,801) (11,059)<br />

Electric energy (net) 48,388 39,035<br />

Pipeline fill<br />

Crude Other revenues oil, which (gross) is necessary to bring a pipeline 307 into working 5,066 order, is treated as a part of the related<br />

Intersegment sales (7) (1,263)<br />

pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is<br />

Other revenues (net) 300 3,803<br />

necessary to the operation of a facility during more than one operating cycle, and its cost cannot be<br />

recouped Total revenues through sale (or is significantly 433,678 impaired). This 357,705 applies even if the part of inventory that is<br />

deemed to be an item of property, plant and equipment cannot be separated physically from the rest of<br />

Revenues inventory. It consist valued of at the cost sales and of is petroleum depreciated products, over the electric useful life energy of the and related trade asset. activities of petroleum<br />

products. Petroleum products are generally being sold at prevailing market prices. Revenues are<br />

recognized n. Impairment when products of non-financial are delivered, assets which occurs when the customer has taken title and has<br />

assumed The Group the assesses risks and at each rewards reporting of ownership, date whether prices there are is an fixed indication or determinable that an asset and may collectability be impaired. is<br />

If reasonably any indication assured. exists, or when annual impairment testing for an asset is required, the Group estimates<br />

the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash<br />

Sales between group companies (intersegment sales) are based on prices generally equivalent to<br />

generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an<br />

commercially available prices.<br />

individual asset, unless the asset does not generate cash inflows that are largely independent of those<br />

from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its<br />

recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In<br />

assessing value in use, the estimated future cash flows are discounted to their present value using a pretax<br />

discount rate that reflects current market assessments of the time value of money and the risks<br />

specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken<br />

into account. If no such transactions can be identified, an appropriate valuation model is used.<br />

Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss<br />

in those expense categories consistent with the function of the impaired asset, except for a property<br />

previously revalued where the revaluation was taken to OCI. In this case, the impairment is also<br />

recognized in OCI up to the amount of any previous revaluation.<br />

Page 63<br />

Page 95

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!