b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)amortizationprocess.Amortizedcostiscalculated Thenetrealizablevalueofcrudeoilandrefinedby taking into account any discount or premium onproducts is based on the estimated selling price in acquisitionandfeesorcoststhatareanintegral theordinarycourseofbusiness,lesstheestimatedpartoftheEIR.TheEIRamortizationisincluded costs of completion and the estimated costs infinancecostsintheconsolidatedstatementof necessary to make the sale.profitorloss.Thiscategorygenerallyappliestointerest-bearingloansandborrowings. Materialsandsuppliesarevaluedusingtheweighted average cost method.DerecognitionPipeline fillAfinancialliabilityisderecognizedwhentheobligation under the liability is discharged orCrudeoil,whichisnecessarytobringapipelinecancelledorexpires.Whenanexistingfinancial intoworkingorder,istreatedasapartoftherelatedliability is replaced by another from the samepipeline.Thisisonthebasisthatitisnotheldforlenderonsubstantiallydifferentterms,ortheterms sale or consumed in a production process but is ofanexistingliabilityaresubstantiallymodified, necessary to the operation of a facility during more suchanexchangeormodificationistreatedas thanoneoperatingcycle,anditscostcannotbethe derecognition of the original liability and therecoupedthroughsale(orissignificantlyimpaired).recognitionofanewliability.Thedifferenceinthe Thisappliesevenifthepartofinventorythatrespectivecarryingamountsisrecognizedinthe isdeemedtobeanitemofproperty,plantandstatementofprofitorloss. equipmentcannotbeseparatedphysicallyfromthe rest of inventory. It is valued at cost and is (iii) Offsetting of financial instrumentsdepreciated over the useful life of the related asset.Financialassetsandfinancialliabilitiesareoffset p. Impairment of non-financial assetsand the net amount is reported in the consolidated statementoffinancialpositionifthereisacurrently TheGroupassessesateachreportingdateenforceablelegalrighttooffsettherecognized whether there is an indication that an asset may be amounts and there is an intention to settle on a netimpaired.Ifanyindicationexists,orwhenannualbasis,torealizetheassetsandsettletheliabilities impairmenttestingforanassetisrequired,thesimultaneously. Groupestimatestheassetsrecoverableamount.Anassetsrecoverableamountisthehigherofano. Inventoriesassetsorcashgeneratingunits(CGU)fairvaluePetroleum products are valued at the lower of costless costs of disposal and its value in use. It is andnetrealizablevalue. determinedforanindividualasset,unlesstheassetdoesnotgeneratecashinflowsthatarelargelyRawmaterials: independent of those from other assets or groups ofassets.Wherethecarryingamountofanasset Purchase cost is valued on weighted averageorCGUexceedsitsrecoverableamount,theassetis considered impaired and is written down to its method recoverableamount.Inassessingvalueinuse,Finishedgoodsandworkinprogress: theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscount Cost of direct materials and labor and aratethatreflectscurrentmarketassessmentsof proportion of manufacturing overheads basedthetimevalueofmoneyandtherisksspecifictoon normal operating capacity but excludingthe asset. In determining fair value less costs of borrowing costs disposal,recentmarkettransactionsaretakenintoaccount.Ifnosuchtransactionscanbeidentified,Inventories are stated at the lower of cost andan appropriate valuation model is used. netrealizablevalue.Netrealizablevalueistheestimated selling price in the ordinary course ofImpairment losses of continuing operations are business,lessestimatedcostsofcompletionand recognizedintheconsolidatedstatementofprofitorthe estimated costs to sell. loss in those expense categories consistent with the functionoftheimpairedasset,exceptforapropertyThecostofcrudeoilandrefinedproductsisthe previously revalued where the revaluation was purchasecost,thecostofrefining,includingthe takentoOCI.Inthiscase,theimpairmentisalsoappropriateproportionofdepreciation,depletion recognizedinOCIuptotheamountofanypreviousandamortizationandoverheadsbasedonnormal revaluation.operatingcapacity,determinedonaweightedaverage basis. 47'