b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)Growthrateusedtoextrapolatecashflows riskisincorporatedbyapplyingindividualbetabeyond the budget period factors.ThebetafactorsareevaluatedannuallyGross margins basedonpubliclyavailablemarketdata.Oil pricesGrossmarginsarebasedonaveragevaluesachievedinthethreeyearsprecedingthestartof Longtermforecastedoilpricesarebasedonthebudgetperiod.Theseareincreasedoverthe managementsestimatesandavailablemarketbudgetperiodforanticipatedimprovementsinthe data.efficiencyofoperations.Anincreaseof2%(2018:2%)perannumwasappliedbasedoneconomic Market share assumptionsgrowth(quantities)oftheCGU. TheseassumptionsareimportantbecauseaswellDiscount ratesasusingindustrydataforgrowthrates(asnotedbelow),managementassesseshowtheCGUsDiscountratesrepresentthecurrentmarket position,relativetoitscompetitors,mightchangeassessmentoftherisksspecifictoeachCGU, overtheforecastperiod.Managementexpectsthetakingintoconsiderationthetimevalueofmoney Groupsshareoftheoilretailproductsmarkettoandindividualrisksoftheunderlyingassetsthat bestableovertheforecastperiod.havenotbeenincorporatedinthecashflowestimates.Thediscountratecalculationisbased Growth rate estimatesonthespecificcircumstancesoftheGroupand Ratesarebasedoneconomicgrowthrates,growthitsoperatingsegmentsandisderivedfromits domesticproductandrelevantpublishedresearch.WACC,withappropriateadjustmentsmadetoreflecttherisksspecifictotheCGU.TheWACC Sensitivity to changes in assumptionstakesintoaccountbothdebtandequity,weighted63.14%(2018:46.68%)debtversus36.86% WithregardtotheassessmentofVIUforthe(2018:53.32%)equity,duetothedebttoequity GOw2CGU,managementbelievesthattherestructureoftheGroup.Thecostofequityis are no reasonably possible changes in any of derivedfromtheexpectedreturnoninvestment theabovekeyassumptionsthatwouldcausethebytheGroupsinvestors.Thecostofdebtis carryingvalueoftheCGUtomateriallyexceeditsbasedontheinterest-bearingborrowingsthe recoverableamount.Groupisobligedtoservice.Segment-specific4.6 INVESTMENT PROPERTIES July26,2019andtheimpairmentwasprocessedStaatsolie purchased the land situated inaccordinglyinfinancialyear2018.OnethousandWageningen,DistrictNickeriein2009.The twohundredandtwo(1202)hectaresoftheinvestmentpropertiesarecarriedathistoricalcost investmentpropertyisleasedoutunderoperatingless accumulated impairment losses. Initially thelease,amountingtoUS$32thousandannuallandwouldaccommodatetheEthanolBusinessof income.TherearenodirectoperatingexpensesStaatsoliewhichwascancelledin2015.Avaluation arising from the rental agreement on account for oftheinvestmentpropertieswascarriedoutby Staatsolie.Assessmentofthefairvalueoftheanexternalindependentqualifiedassessoron investmentpropertiesatDecember31,2019didnotresultinanymaterialchangeinthevalue.(X US$ 1,000) 2019 2018Reconciliation of carrying amountBalance at 1 January 16,882 17,762Impairment loss - (880)Balance at 31 December 16,88216,882 87'