b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)Power plant assets k. Leases Thepowerplantassetsaredepreciatedona Thedeterminationofwhetheranarrangementis,straight-linebasisandasfollows: orcontains,aleaseisbasedonthesubstanceofthearrangementattheinceptiondate.TheAsset Category Percentagearrangementis,orcontainsalease,iffulfillmentof the arrangement is dependent on the use of Building hall 5% aspecificassetorassetsorthearrangementconveysarighttousetheassetorassets,evenifProduction hall 10% theasset(orassetsare)isnotexplicitlyspecifiedFurniture 33.33% in an arrangement.Tankbattery 20% Group as a lesseePowerhouseequipment 5-50% Finance leases that transfer to the Group substantiallyalloftherisksandbenefitsincidentalOther units5-20% toownershipoftheleaseditem,arecapitalizedat the commencement of the lease at the fair Corporate & Other fixed assets valueoftheleasedpropertyor,iflower,atthepresent value of the minimum lease payments. Land and freehold estates are not depreciated.LeasepaymentsareapportionedbetweenfinanceOtherpropertiesoutsidetheproductionfieldare charges and a reduction in the lease liability so beingamortizedonastraight-linebasis.The as to achieve a constant rate of interest on the annual depreciation percentages are as follows;remaining balance of the liability. Finance charges Whereapplicablearesidualvalueistakeninto arerecognizedinfinancecostsintheconsolidatedconsideration. statementofprofitorloss.Asset Category PercentageA leased asset is depreciated over the useful life oftheasset.However,ifthereisnoreasonableBuilding hall 10% certainty that the Group will obtain ownership by theendoftheleaseterm,theassetisdepreciatedTelecommunicationequipment 20% over the shorter of the estimated useful life of theassetandtheleaseterm.TheGrouphasDockToutLuiFaut 4% concludedthattherearenofinanceleasesasatOil tanker 10% December31,2018.Drilling machinery 20% Anoperatingleaseisaleaseotherthanafinancelease.OperatingleasepaymentsarerecognizedHeavyequipment 20% as an operating expense in the consolidated Transportationequipment 33.33% statementofprofitorlossonastraight-linebasisover the lease term.Anitemofproperty,plantandequipmentis l.Borrowing costs derecognizedupondisposalorwhennofuture Borrowing costs directly attributable to the economicbenefitsareexpectedfromitsuseor acquisition,constructionorproductionofanassetdisposal.Anygainorlossarisingonde-recognition that necessarily takes a substantial period of of the asset (calculated as the difference betweentime to get ready for its intended use or sale are the net disposal proceeds and the carrying amountcapitalizedaspartofthecostoftherespectiveof the asset) is included in the consolidatedasset. All other borrowing costs are expensed in statementofprofitorlosswhentheassetis the period in which they occur. Borrowing costs derecognized.Theresidualvalues,usefullives consist of interest and other costs that an entity andmethodsofdepreciationofproperty,plantand incurs in connection with the borrowing of funds. equipmentarereviewedateachfinancialyearend Borrowing costs incurred on or after the date andadjustedprospectively,ifappropriate. oftransitionforalleligiblequalifyingassetsarecapitalized.43'