Staatsolie Annual Report 2017
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<strong>Annual</strong> <strong>Report</strong> <strong>2017</strong> 99<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 />
Other (expense)/income<br />
selling price in the ordinary course of business, less estimated costs of completion and the estimated<br />
costs x US$ to 1,000 sell.<br />
<strong>2017</strong> 2016<br />
Sales tax provision (6,389) -<br />
The Government cost of crude of Suriname oil and share refined SurGold products is the purchase (11,985) cost, the cost of refining, 2,742 including the<br />
appropriate Settlement proportion of BNIS claim of depreciation, depletion and amortization (9,440) and overheads - based on normal<br />
Third party claims (1,486) -<br />
operating capacity, determined on a weighted average basis.<br />
Interest on late payments (2,619) -<br />
The<br />
Insurance<br />
net realizable<br />
claim income<br />
value of crude oil and refined products is<br />
2,000<br />
based on the estimated<br />
-<br />
selling price in the<br />
(Loss) / Gain on foreign currency transactions (1,364) 8,445<br />
ordinary<br />
Disposal<br />
course<br />
of fixed<br />
of<br />
assets<br />
business, less the estimated costs of completion<br />
-<br />
and the estimated<br />
(618)<br />
costs necessary to<br />
make Sale of the lease sale. data package - (1,200)<br />
Other income 7,646 4,088<br />
Materials Total other and (expense)/income supplies are valued using the weighted average (23,637) cost method. 13,457<br />
Pipeline Other (expense) fill / income as at December 31, <strong>2017</strong> and 2016 comprise income / (expense) from several<br />
Crude sources. oil, The which significant is necessary items in to <strong>2017</strong> bring relates a pipeline to: 1) into management working order, evaluated is treated the sales as a tax part receivable of the related taken<br />
pipeline. in the sales This tax is returns on the for basis previous that it years is not and held based for sale on communication or consumed in and a confirmation production process, received but from is<br />
necessary the tax authority, to the operation recognized of a provision facility during of US$ more 6,389; than 2) one the operating GoS share cycle, in SurGold and its cost which cannot was be an<br />
recouped expense of through US$ 11,985 sale (or for is significantly <strong>Staatsolie</strong> because impaired). the This revenues applies which even if GoS the earned part of inventory with their that 4.8% is<br />
deemed participating to be interest, an item exceeded of property, their plant part and of equipment the cash cannot calls paid be separated and 3) BNIS physically had a from claim the against rest of<br />
inventory. <strong>Staatsolie</strong> It regarding is valued civil at cost technical and is tasks depreciated they performed over the for useful the life refinery of the expansion related asset. project. The claim was<br />
settled with a net impact of US$ 9,440.<br />
n. Impairment of non-financial assets<br />
The significant items in 2016 relate to: 1) a gain on foreign currency transactions on sales and purchases<br />
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.<br />
executed in SRDs and 2) the GoS’ share in SurGold which was an income of US$ 2,742 because the<br />
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates<br />
cash calls exceeded the 4.8% participating interest in SurGold.<br />
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash<br />
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an<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 />
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