Staatsolie Annual Report 2017

Annual Report 2017 97
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)
Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated
selling Employee price in benefits the ordinary expense course of business, less estimated costs of completion and the estimated
costs to sell.
x US$ 1,000 2017 2016
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
appropriate Included in proportion cost of sales of depreciation, depletion and amortization and overheads based on normal
operating
Wages, salaries,
capacity,
emoluments
determined on
and
a weighted
other benefits
average basis.
(34,090) (29,281)
Employers contribution of employee pension benefits (3,861) (3,578)
The Medical net realizable expenses value of crude oil and refined products is based on the (1,634) estimated selling price (981) in the
Safety and traning expenses (989) (1,033)
ordinary
Car lease
course
benefit
of business, less the estimated costs of completion and
(2,766)
the estimated costs
(2,635)
necessary to
make Other the personnel sale. expenses (557) (274)
Sub total (43,897) (37,782)
Materials and supplies are valued using the weighted average cost method.
Included in Exploration expenses
Wages, salaries, emoluments and other benefits (1,026) (983)
Pipeline Employers fill contribution of employee pension benefits (97) (120)
Crude Medical oil, expenses which is necessary to bring a pipeline into working order, is treated (35) as a part of the (25) related
Safety and traning expenses (5) -
pipeline.
Car lease
This
benefit
is on the basis that it is not held for sale or consumed in
(78)
a production process,
(93)
but is
necessary Sub total to the operation of a facility during more than one operating (1,241) cycle, and its cost (1,221) cannot be
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
Included in Selling and distribution expenses
deemed Wages, to salaries, be an item emoluments of property, and plant other and benefits equipment cannot be separated (2,321) physically from (2,253) the rest of
inventory. Employers It is contribution valued at cost of employee and is depreciated pension benefits over the useful life of the related (212) asset. (240)
Medical expenses (85) (52)
Safety and traning expenses (20) (42)
Car lease n. benefit Impairment of non-financial assets
(101) (117)
Other personnel expenses (3) (3)
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
Sub total (2,742) (2,707)
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates
Included in Other operating expenses
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
Wages, salaries, emoluments and other benefits (1,483) (1,020)
generating Other personnel units (CGU) expenses fair value less costs of disposal and its value in (190) use. It is determined (120) for an
individual Sub total asset, unless the asset does not generate cash inflows that are (1,673) largely independent (1,140) of those
from
Included
other
in
assets
General
or groups
and administrative
of assets. Where
expenses
the carrying amount of an asset or CGU exceeds its
recoverable Wages, salaries, amount, emoluments the asset is and considered other benefits impaired and is written down (13,824) to its recoverable (11,239) amount. In
Employers contribution of employee pension benefits (918) (1,156)
assessing value in use, the estimated future cash flows are discounted to their present value using a pretax
Safety discount and traning rate that expenses reflects current market assessments of the time (531) value of money and (43) the risks
Medical expenses (1,520) (1,735)
specific
Car lease
to the
benefit
asset. In determining fair value less costs of disposal, recent
(483)
market transactions
(970)
are taken
Other personnel expenses (220) (375)
into Sub account. total If no such transactions can be identified, an appropriate valuation (17,496) model is used. (15,518)
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
Grand total (67,049) (58,368)
in those expense categories consistent with the function of the impaired asset, except for a property
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
recognized in OCI up to the amount of any previous revaluation.
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