b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (Continued)qualifyforcapitalizationrelatingtoOilandgas (iii) Major maintenance, refits, inspection and propertiesassetadditions,improvementsornew repairsdevelopmentsExpenditureonmajormaintenancerefits,Oil propertiesproducing assets and otherinspections or repairs comprises the cost of property, plant and equipment replacementassetsorpartsofassets,inspectioncostsandoverhaulcosts.Whereanasset,orpart(i) Initial recognition of an asset that was separately depreciated and OilandgaspropertiesandOtherproperty, isnowwrittenoff,isreplacedanditisprobableplantandequipmentarestatedatcost,less thatfutureeconomicbenefitsassociatedwithaccumulated depreciation and accumulatedtheitemwillflowtotheGroup,theexpenditureimpairment losses. iscapitalized.Wherepartoftheassetreplacedwas not separately considered as a component Theinitialcostofanassetcomprisesitspurchase andthereforenotdepreciatedseparately,theprice or construction cost (if the asset wasreplacementvalueisusedtoestimatethepreviouslyclassifiedasassetsindevelopment), carryingamountofthereplacedasset(s)andanycostsdirectlyattributabletobringingthe is immediately written off. Inspection costs assetintooperation,theinitialestimateofthe associatedwithmajormaintenanceprogramsaredecommissioningobligationand,forqualifying capitalizedandamortizedovertheperiodtotheassets(whererelevant),borrowingcosts. next inspection. All other day-to-day repairs and Thepurchasepriceorconstructioncostisthe maintenance costs are expensed as incurred.aggregateamountpaidandthefairvalueofany Refinery, power plant and other fixed assetsotherconsiderationgiventoacquiretheasset.(ii) Depreciation/amortization Therefinery,powerplantandotherfixedassetsarevaluedatcost.ThecapitalizedcostsoftheseOilpropertiesaredepreciated/amortizedonaUOP assetsaredepreciatedonastraight-linebasis,basisoverthetotalproveddevelopedreservesof takingintoaccounttheestimatedusefullifetimeofthefieldconcerned.TheUOPratecalculationfor thesignificantcomponentsoftherefinery.thedepreciation/amortizationoffielddevelopment Projects in progresscoststakesintoaccountexpendituresincurredtodate,togetherwithsanctionedfuturedevelopment Projectsinprogressrelatestoworkinprogress,expenditure. for which at the date of completion the cost is Otherproperty,plantandequipmentaregenerally capitalizedtotheappropriatecategoryofpropertydepreciatedonastraight-linebasisovertheir plantandequipment.Projectinprogressisnotestimatedusefullives,whichisgenerally25 depreciated.yearsfortherefinery,andmajorinspectioncosts Power plant assetsareamortizedoverthreetofiveyears,whichrepresentstheestimatedperiodbeforethenext Thepowerplantassetsaredepreciatedonaplannedmajorinspection. straight-linebasisandasfollows:Anitemofproperty,plantandequipmentandanysignificantpartinitiallyrecognizedisderecognized Asset Category Percentage upon disposal or when no future economicBuilding hall 5%benefitsareexpectedfromitsuseordisposal.Any gain or loss arising on derecognition of theProductionhall 10%asset(calculatedasthedifferencebetweenthenetdisposal proceeds and the carrying amount of theFurniture 33.33%asset)isincludedintheconsolidatedstatementof Tankbattery 20%profitorlosswhentheassetisderecognized.Theassetsresidualvalues,usefullivesand Powerhouseequipment 5-50%methodsofdepreciation/amortizationare Other units5-20%reviewedateachreportingperiodandadjustedprospectively,ifappropriate.84 STAATSOLIE 2021 ANNUAL REPORT'