b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)Sale of oil products and thermal energy Consideration payable to customersRevenuefromthesaleofoilproductsis Consideration payable to a customer includes recognizedwhenthesignificantrisksandrewards cashamountsthatanentitypays,orexpectsofownershiphavebeentransferred,whichis topay,tothecustomer.TheGrouphassomeconsideredtooccurwhentitlepassestothe contractsforthesaleofoilproductsthatgiverisecustomer.Thisgenerallyoccurswhentheproduct toapenaltywhenfailingtoperformaccordingtoisphysicallytransferredintoavessel,pipeorother theagreeduponterms.Theconsiderationpayabledeliverymechanism. to customers is accounted for as a reduction of the Revenuesarerecordedfromthesalesofthermal transactionpriceand,therefore,ofrevenue.energywhentheproductisdeliveredatafixed (ii) Significant financing component ordeterminableprice,titlehastransferred,andcollectability is reasonably assured. Generally,theGroupprovidesshort-termadvancesto its customers. Using the practical expedient in Salesbetweengroupcompanies,asdisclosed IFRS15,theGroupdoesnotadjustthepromisedinsection3.1segmentinformation,arebased amount of consideration for the effects of a onpricesgenerallyequivalenttocommercially significantfinancingcomponentifitexpects,atavailableprices. contractinception,thattheperiodbetweentheTheGroupconsiderswhetherthereareother transferofthepromisedgoodorservicetothepromises in the contract that are separatecustomerandwhenthecustomerpaysforthatperformanceobligationstowhichaportion goodorservicewillbeoneyearorless.of the transaction price needs to be allocatedTheGroupalsoreceiveslong-termadvancesfrom(e.g.,warranties).Indeterminingthetransaction customersforthesaleofoilproducts.However,price,theGroupconsiderstheeffectsofvariable if the timing of the transfer of these goods or consideration,theexistenceofsignificantfinancing servicesisatdiscretionofthecustomer,thisisnotcomponents,andconsiderationpayabletothe consideredasasignificantfinancingcomponent.customer (if any). (iii) Warranty obligationsSale of thermal energy generation products comprisesofrevenueearnedfromtheprovision TheGrouptypicallyprovideswarrantiesforofelectricityandsteamtoStaatsolieRefinery guaranteeofquality,providingthecustomeraOperations,electricitytotheEnergieBedrijven timeframeoffifteen(15)daysafterdeliverytoSurinameN.V.whoistheonlycustomerofSPCS. raise a claim in regard to shortages and defect in RevenuesaregenerallyrecognizedwhenSPCS quality/quantityofdeliveredgoods.UnderIFRSfulfillsitsperformanceobligationbytransferring 15thisisnotconsideredanadditionalgoodortheaffirmedgoods(electricityandsteam)tothe servicetotheclientandisthereforeconsideredtocustomer and once product has passed the metersbeanassurance-typewarranty.Whenmaterial,the customers obtain control of the product. thesetypesofwarrantiesareaccountedforaswarrantyobligationsandtheestimatedcostof(i) Variable considerationsatisfyingthemisaccruedinaccordancewiththeIf the consideration in a contract includes arequirementsinIAS37Provisions,Contingentvariableamount,theGroupestimatestheamount LiabilitiesandContingentAssets.Refertotheofconsiderationtowhichitwillbeentitledin accountingpolicyonwarrantyprovisionsinsectionexchange for transferring the goods to ther)Provisions.customer.Thevariableconsiderationisestimatedat contract inception and constrained until it is highlyprobablethatasignificantrevenuereversalintheamountofcumulativerevenuerecognizedwillnotoccurwhentheassociateduncertaintywiththevariableconsiderationissubsequentlyresolved.Somecontractsforthesaleofoilproductsgiverisetoaconsiderationpayabletocustomers. 44 STAATSOLIE 2019 ANNUAL REPORT'