b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)abilityoftheGrouptorealizethenetdeferredtax Thenatureandtheimpactofeachamendmentisassets recorded at the reporting date could bedescribedbelow:impacted.Inaddition,futurechangesintaxlawsinthejurisdictionsinwhichtheGroupoperates IFRS 15 Revenue from Contracts with could limit the ability of the Group to obtain taxCustomers deductions in future periods.IFRS 15 supersedes IAS 11 Construction Oil properties Contracts,IAS18RevenueandrelatedInterpretationsanditapplies,withlimitedTheapplicationoftheGroupsaccountingpolicy exceptions,toallrevenuearisingfromcontractsfor exploration and evaluation expenditurewithitscustomers.IFRS15establishesafive-requiresjudgmenttodeterminewhetherfuture step model to account for revenue arising from economicbenefitsarelikelyfromfutureeither contractswithcustomersandrequiresthatexploitationorsale,orwhetheractivitieshave revenueberecognizedatanamountthatreflectsnot reached a stage which permits a reasonablethe consideration to which an entity expects to assessmentoftheexistenceofreserves.The be entitled in exchange for transferring goods or determinationofreservesandresourcesis,in services to a customer. itself,anestimationprocessthatinvolvesvaryingdegrees of uncertainty depending on how theIFRS15requiresentitiestoexercisejudgement,resourcesareclassified.Theseestimatesdirectly taking into consideration all of the relevant facts impact when the Group defers explorationand circumstances when applying each step of andevaluationexpenditure.Thedeferral themodeltocontractswiththeircustomers.Thepolicyrequiresmanagementtomakecertain standardalsospecifiestheaccountingfortheestimates and assumptions about future eventsincremental costs of obtaining a contract and andcircumstances,inparticular,whetheran thecostsdirectlyrelatedtofulfillingacontract.economically viable extraction operation can beInaddition,thestandardrequiresextensiveestablished. Any such estimates and assumptionsdisclosures. may change as new information becomesTheGroupadoptedIFRS15usingthemodifiedavailable.If,afterexpenditureiscapitalized, retrospective method of adoption with the date of information becomes available suggesting that theinitialapplicationof1January2018.Underthisrecoveryoftheexpenditureisunlikely,therelevant method,thestandardcanbeappliedeithertoallcapitalizedamountiswrittenoffintheconsolidated contracts at the date of initial application or only to statementofprofitorlossintheperiodwhenthe contractsthatarenotcompletedatthisdate.Thenew information becomes available. Group elected to apply the standard to all contracts asat1January2018.2.4.1 CHANGES IN ACCOUNTING POLICIESThecumulativeeffectofinitiallyapplyingIFRS15AND DISCLOSURES isrecognizedatthedateofinitialapplicationasanadjustmenttotheopeningbalanceofretainedNew and amended standards andearnings.Therefore,thecomparativeinformationinterpretationswas not restated and continues to be reported underIAS11,IAS18andrelatedInterpretations.In2018theGroupappliedIFRS15andIFRS9for BasedonanalysisperformedbytheGroup,thefirsttime.Thenatureandeffectofthechanges therearenosignificantchangestothetimingas a result of adoption of these new accountingand amounts of existing revenue contracts under standards are described below.IFRS 15 as compared to the superseded revenue Several other amendments and interpretationsguidance. Financial statement line items were applyforthefirsttimein2018,butdonothavean notaffectedasat01January2018andfortheimpactontheconsolidatedfinancialstatementsof yearended31December2018asaresultofthethe Group. adoption of IFRS 15.TheGrouphasnotearlyadoptedanystandards,interpretations or amendments that have been issued but are not yet effective.54 STAATSOLIE 2018 ANNUAL REPORT'