b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)ThecarryingamountofoilpropertiesatDecember abilityoftheGrouptorealizethenetdeferredtax31,2019isshowninSection4.1. assets recorded at the reporting date could be As the economic assumptions used may changeimpacted.Inaddition,futurechangesintaxlawsand as additional geological information is obtainedinthejurisdictionsinwhichtheGroupoperatesduringtheoperationofafield,estimatesof could limit the ability of the Group to obtain tax recoverablereservesmaychange.Suchchanges deductions in future periods. mayimpacttheGroupsreportedfinancialposition Oil propertiesandresults,whichinclude:TheapplicationoftheGroupsaccountingpolicyThecarryingvalueofexplorationandevaluation forexplorationandevaluationexpenditureassets;oilproperties;property,plantand requiresjudgmenttodeterminewhetherfutureequipment;andgoodwillmaybeaffecteddueto economicbenefitsarelikelyfromfutureeitherchangesinestimatedfuturecashflows. exploitationorsale,orwhetheractivitieshaveDepreciationandamortizationchargesinthe notreachedastagewhichpermitsareasonableconsolidatedstatementofprofitorlossmay assessmentoftheexistenceofreserves.Thechangewheresuchchargesaredetermined determinationofreservesandresourcesis,inusingtheUOPmethod,orwheretheusefullifeof itself,anestimationprocessthatinvolvesvaryingthe related assets change (Section 4.1). degreesofuncertaintydependingonhowtheresourcesareclassified.TheseestimatesdirectlyProvisionsfordecommissioningmayrequire impactwhentheGroupdefersexploration andevaluationexpenditure.Thedeferralrevision-wherechangestoreservesestimates policyrequiresmanagementtomakecertainaffectexpectationsaboutwhensuchactivitieswill estimatesandassumptionsaboutfutureeventsoccurandtheassociatedcostoftheseactivities andcircumstances,inparticular,whetheran(Section4.8). economicallyviableextractionoperationcanbeTherecognitionandcarryingvalueofdeferred established. Any such estimates and assumptions tax assets may change due to changes in themaychangeasnewinformationbecomesjudgmentsregardingtheexistenceofsuchassets available.If,afterexpenditureiscapitalized,andinestimatesofthelikelyrecoveryofsuch informationbecomesavailablesuggestingthattheassets (Section 3.3). recoveryoftheexpenditureisunlikely,therelevantcapitalizedamountiswrittenoffintheconsolidatedDeferred tax statementofprofitorlossintheperiodwhenthenewinformationbecomesavailable.Judgmentisrequiredtodeterminewhicharrangements are considered to be a tax on income as opposed to an operating cost. Judgmentisalsorequiredtodeterminewhether 2.4.1 CHANGES IN ACCOUNTING POLICIES deferredtaxassetsarerecognizedinthe AND DISCLOSURESconsolidatedstatementoffinancialposition. New and amended standards and Deferredtaxassets,includingthosearising interpretations fromunutilizedtaxlosses,requiretheGrouptoassessthelikelihoodthattheGroupwillgenerate TheGroupappliedIFRS16Leasesforthefirstsufficienttaxableearningsinfutureperiods,in time.Thenatureandeffectofthechangesasaordertoutilizerecognizeddeferredtaxassets. resultofadoptionofthisnewaccountingstandardJudgmentisalsorequiredinrespectofthe aredescribedbelow.applicationofexistingtaxlawsineachjurisdiction.Assumptions about the generation of futureSeveralotheramendmentsandinterpretationstaxableprofitsdependonmanagements applyforthefirsttimein2019,butdonothaveanestimatesoffuturecashflows.Theseestimates impactontheconsolidatedfinancialstatementsofof future taxable income are based on forecastthe Group.cashflowsfromoperations(whichareimpacted TheGrouphasnotearlyadoptedanystandards,byproductionandsalesvolumes,commodity interpretationsoramendmentsthathavebeenprices,reserves,operatingcosts,closureand issuedbutarenotyeteffective.rehabilitationcosts,capitalexpenditure,dividendsand other capital management transactions).ThenatureandtheimpactofeachamendmentisTotheextentthatfuturecashflowsandtaxable describedbelow:incomediffersignificantlyfromestimates,the59'