b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (Continued)ThefunctionalcurrencyofGOw2,awhollyowned DeferredtaxassetsandliabilitiesaremeasuredsubsidiaryofStaatsolie,istheSurinamesedollar, at the tax rates that are expected to apply in the thereforethenon-monetaryassetsandliabilities yearwhentheassetisrealizedortheliabilityisofGOw2hadtoberevalued.IAS29Financial settled,basedontaxrates(andtaxlaws)thatReportinginHyperinflationaryEconomiesrequires havebeenenactedorsubstantivelyenactedatmanagementtorestatethefinancialstatementsof the reporting date. Deferred tax relating to items entities whose functional currency is the currencyrecognizedoutsideprofitorlossisrecognizedofahyperinflationaryeconomy,intothecurrent outsideprofitorloss.purchasing power at the Statement of Financial Positiondate.Therestatementsresultedinan Deferredtaxassetsandliabilitiesareoffset,increaseinotherpropertyplantandequipment onlyifalegallyenforceablerightexiststosetoffamountingtoUS$10,182andamonetaryloss current income tax assets against current income (net)ofUS$19,064asatDecember31,2021 taxliabilities,andthedeferredtaxesrelatetothewhichisrecognizedintheconsolidatedstatement same taxation authority.ofprofitorloss. Sales taxl.Taxes Revenues,expensesandassetsarerecognizedCurrentincometaxassetsandliabilitiesfor netoftheamountofsalestaxexcept:the current period are measured at the amountWherethesalestaxincurredonapurchaseofexpectedtoberecoveredfromorpaidtothe assetsorservicesisnotrecoverablefromthetaxationauthorities.Thetaxratesandtaxlaws taxationauthority,inwhichcase,thesalestaxused to compute the amount are those that areisrecognizedaspartofthecostofacquisitionenacted,orsubstantivelyenactedatthereporting oftheassetoraspartoftheexpenseitem,asdate in the countries where the Group operatesapplicableandgeneratestaxableincome.Currentincometaxrelatingtoitemsrecognizeddirectlyinequity Receivablesandorpayablesarestatedwiththeisrecognizedinequityandnotinthestatementof profitorloss.Managementperiodicallyevaluates amount of sales tax includedpositionstakeninthetaxreturnswithrespectto Thenetamountofsalestaxrecoverablefrom,orsituationsinwhichapplicabletaxregulationsare payableto,thetaxationauthorityisincludedassubjecttointerpretationandestablishesprovisions partofreceivablesorpayablesintheconsolidatedwhere appropriate. statementoffinancialposition.Deferred tax m. Property, plant and equipment Deferredtaxisprovidedusingtheliabilitymethod Constructioninprogress,plantandequipmentareontemporarydifferencesbetweenthetaxbasesof statedatcost,netofaccumulateddepreciationassetsandliabilitiesandtheircarryingamountsfor and/oraccumulatedimpairmentlosses,ifany.financialreportingpurposesatthereportingdate. Such cost includes the cost of replacing parts of Deferredtaxliabilitiesarerecognizedforall theproperty,plantandequipmentandborrowingtaxabletemporarydifferencessubjecttocertain costsforlong-termconstructionprojectsifthespecificexceptions. recognitioncriteriaaremet.Whensignificantpartsofproperty,plantandequipmentarerequiredtoDeferredtaxassetsarerecognizedforall bereplacedatintervals,theGrouprecognizesdeductibletemporarydifferencesandcarry- suchpartsasindividualassetswithspecificforwardofunusedtaxlosses,totheextentthatitis usefullivesanddepreciatesthemaccordingly.probablethatfuturetaxableprofitwillbeavailable Likewise,whenamajorinspectionisperformed,against which the temporary differences and carryitscostisrecognizedinthecarryingamountforwardofunusedtaxlossescanbeutilized. oftheplantandequipmentasareplacementiftherecognitioncriteriaaresatisfied.AllotherThecarryingamountofdeferredtaxassetsis repairandmaintenancecostsarerecognizedinreviewedateachreportingdateandreduced theconsolidatedstatementofprofitorlossastotheextentthatitisnolongerprobablethat incurred.Thepresentvalueoftheexpectedcostsufficienttaxableprofitwillbeavailabletoallow forthedecommissioningoftheassetafteritsuse,allorpartofthedeferredtaxassettobeutilized. isincludedinthecostoftherespectiveassetiftheUnrecognizeddeferredtaxassetsarereassessed recognitioncriteriaforaprovisionaremet.Refertoateachreportingdateandarerecognizedtothe Significantaccountingjudgments,estimatesandextentthatithasbecomeprobablethatfuture assumptions(Section2.4)andProvisions(Sectiontaxableprofitswillallowthedeferredtaxassetto 4.9)forfurtherinformationabouttherecognizedberecovered. decommissioningprovision.82 STAATSOLIE 2021 ANNUAL REPORT'