b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)IFRS 16 Leases Leases previously accounted for as operating leasesIFRS16LeasessupersedesIAS17Leases,IFRIC4DeterminingwhetheranArrangementcontains TheGrouprecognizedright-of-useassetsandaLease,SIC-15OperatingLeases-Incentivesand leaseliabilitiesforthoseleasespreviouslySIC-27EvaluatingtheSubstanceofTransactions classifiedasoperatingleases,exceptforshort-termInvolvingtheLegalFormofaLease.Thestandard leasesandleasesoflow-valueassets.Theright-setsouttheprinciplesfortherecognition, of-useassetsforemostleaseswererecognizedmeasurement,presentationanddisclosureof based on the carrying amount as if the standard leasesandrequireslesseestoaccountforall hadalwaysbeenapplied,apartfromtheuseofleases under a single on-balance sheet model. incrementalborrowingrateatthedateofinitialLessoraccountingunderIFRS16issubstantially application.Insomeleases,theright-of-useassetsunchangedunderIAS17.Lessorswillcontinueto wererecognizedbasedontheamountequalclassifyleasesaseitheroperatingorfinanceleases totheleaseliabilities,adjustedforanyrelatedusingsimilarprinciplesasinIAS17.Therefore, prepaidandaccruedleasepaymentspreviouslyIFRS16didnothaveanimpactforleaseswhere recognized.Leaseliabilitieswererecognizedthe Group is the lessor. basedonthepresentvalueoftheremainingleasepayments,discountedusingtheincrementalTheGroupadoptedIFRS16usingthemodified borrowingrateatthedateofinitialapplication.retrospectivemethodofadoptionwiththedateof TheGroupalsoappliedtheavailablepracticalinitialapplicationof1January2019.Underthis expedientswhereinit:method,thestandardisappliedretrospectivelywiththecumulativeeffectofinitiallyapplying Used a single discount rate to a portfolio of leases thestandardrecognizedatthedateofinitial withreasonablysimilarcharacteristics.application. ReliedonitsassessmentofwhetherleasesareTheGroupelectedtousethetransitionpractical onerous immediately before the date of initial expedientallowingthestandardtobeapplied application.onlytocontractsthatwerepreviouslyidentifiedasleasesapplyingIAS17andIFRIC4atthedateof Applied the short-term leases exemptions to initialapplication.TheGroupalsoelectedtouse leaseswithleasetermthatendswithin12monthstherecognitionexemptionsforleasecontractsthat, at the date of initial application.atthecommencementdate,havealeasetermofExcluded the initial direct costs from the 12 months or less and do not contain a purchase option(short-termleases),andleasecontractsfor measurement of the right-of-use asset at the date whichtheunderlyingassetisoflowvalue(low- of initial application.valueassets).Used hindsight in determining the lease terma. Nature of the effect of adoption of IFRS 16 wherethecontractcontainsoptionstoextendorterminate the lease.TheGrouphasleasecontractsforvariousitemsof TheadoptionofIFRS16didnothaveanimpactonplant,machinery,vehiclesandotherequipment. retainedearningsasatJanuary1,2018(refertoBeforetheadoptionofIFRS16,theGroup Section4.7).classifiedeachofitsleases(aslessee)atthe b. Summary of new accounting policiesinception date as an operating lease as it did not haveanyfinanceleases. SetoutbelowarethenewaccountingpoliciesofInanoperatinglease,theleasedpropertywasnot theGroupuponadoptionofIFRS16,whichhavecapitalized,andtheleasepaymentsderecognized beenappliedfromthedateofinitialapplication:asrentexpenseinprofitorlossonastraight-line Right-of-useassetsbasisovertheleaseterm.AnyprepaidrentandaccruedrentwererecognizedunderPrepayments TheGrouprecognizesright-of-useassetsattheandTradeandotherpayables,respectively. commencementdateofthelease(i.e.,thedateUponadoptionofIFRS16,theGroupapplieda theunderlyingassetisavailableforuse).Right-single recognition and measurement approach forof-useassetsaremeasuredatcost,lessanyallleases,exceptforshort-termleasesandleases accumulateddepreciationandimpairmentlosses,oflow-valueassets.Thestandardprovidesspecific andadjustedforanyremeasurementofleasetransitionrequirementsandpracticalexpedients, liabilities.Thecostofright-of-useassetsincludeswhichhasbeenappliedbytheGroup. theamountofleaseliabilitiesrecognized,initial60 STAATSOLIE 2019 ANNUAL REPORT'