b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)(ii) Foreign subsidiaries taxableprofitswillallowthedeferredtaxassettoAs at the reporting date for consolidationberecovered.purposes,theassetsandliabilitiesofforeign Deferredtaxassetsandliabilitiesaremeasuredatsubsidiaries are translated into the presentationthe tax rates that are expected to apply in the year currency of the Group at the rate of exchangewhentheassetisrealizedortheliabilityissettled,rulingatthereportingdateand,theirstatements basedontaxrates(andtaxlaws)thathavebeenofprofitorlossaretranslatedattheweighted enactedorsubstantivelyenactedatthereportingaverageexchangeratesfortheyear.The date.Deferredtaxrelatingtoitemsrecognizedexchange differences arising on the translationoutsideprofitorlossisrecognizedoutsideprofitoraretakendirectlytoothercomprehensiveincome. loss. Ondisposalofaforeignentity,thedeferredcumulativeamountrecognizedinequityrelating Deferredtaxassetsandliabilitiesareoffset,tothatparticularforeignentityisrecognizedinthe only if a legally enforceable right exists to set off consolidatedstatementofprofitorloss. current income tax assets against current income taxliabilities,andthedeferredtaxesrelatetothei.Taxes same taxation authority.Current income tax assets and liabilities forSales taxthe current period are measured at the amount expectedtoberecoveredfromorpaidtothe Revenues,expensesandassetsarerecognizedtaxationauthorities.Thetaxratesandtaxlaws netoftheamountofsalestaxexcept:used to compute the amount are those that areWherethesalestaxincurredonapurchaseofenacted,orsubstantivelyenactedatthereporting assetsorservicesisnotrecoverablefromthedateinthecountrieswheretheGroupoperates taxationauthority,inwhichcase,thesalestaxand generates taxable income. Current incomeisrecognizedaspartofthecostofacquisitiontaxrelatingtoitemsrecognizeddirectlyinequity oftheassetoraspartoftheexpenseitem,asisrecognizedinequityandnotinthestatementof applicableprofitorloss.Managementperiodicallyevaluatespositionstakeninthetaxreturnswithrespectto Receivablesandorpayablesarestatedwiththesituationsinwhichapplicabletaxregulationsare amount of sales tax includedsubjecttointerpretationandestablishesprovisionswhereappropriate. Thenetamountofsalestaxrecoverablefrom,orDeferred tax payableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesintheconsolidatedDeferredtaxisprovidedusingtheliabilitymethod statementoffinancialposition.ontemporarydifferencesbetweenthetaxbasesof j. Property, plant and equipment assets and liabilities and their carrying amounts for financialreportingpurposesatthereportingdate. Constructioninprogress,plantandequipmentareDeferredtaxliabilitiesarerecognizedforall statedatcost,netofaccumulateddepreciationtaxabletemporarydifferencessubjecttocertain and/oraccumulatedimpairmentlosses,ifany.specificexceptions. Such cost includes the cost of replacing parts of theproperty,plantandequipmentandborrowingDeferredtaxassetsarerecognizedforall costsforlong-termconstructionprojectsifthedeductible temporary differences and carry- recognitioncriteriaaremet.Whensignificantpartsforwardofunusedtaxlosses,totheextentthatitis ofproperty,plantandequipmentarerequiredtoprobablethatfuturetaxableprofitwillbeavailable bereplacedatintervals,theGrouprecognizesagainstwhichthetemporarydifferencesandcarry suchpartsasindividualassetswithspecificforwardofunusedtaxlossescanbeutilized. usefullivesanddepreciatesthemaccordingly.Likewise,whenamajorinspectionisperformed,Thecarryingamountofdeferredtaxassetsis itscostisrecognizedinthecarryingamountreviewedateachreportingdateandreduced oftheplantandequipmentasareplacementto the extent that it is no longer probable thatiftherecognitioncriteriaaresatisfied.Allothersufficienttaxableprofitwillbeavailabletoallow repairandmaintenancecostsarerecognizedinallorpartofthedeferredtaxassettobeutilized. theconsolidatedstatementofprofitorlossasUnrecognizeddeferredtaxassetsarereassessed incurred.Thepresentvalueoftheexpectedcostateachreportingdateandarerecognizedtothe forthedecommissioningoftheassetafteritsuse,extent that it has become probable that futureisincludedinthecostoftherespectiveassetifthe46 STAATSOLIE 2019 ANNUAL REPORT'