b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)and the carrying amount of the asset and areF inancialassetsatfairvaluethroughOCIwithrecognizedintheconsolidatedstatementofprofitor recyclingofcumulativegainsandlosses(debtlosswhentheassetisderecognized. instruments);m. Financial instrumentsinitial recognitionFinancialassetsdesignatedatfairvaluethroughand subsequent measurementOCIwithnorecyclingofcumulativegainsandAfinancialinstrumentisanycontractthatgives lossesuponderecognition(equityinstruments);risetoafinancialassetofoneentityandafinancial Financialassetsatfairvaluethroughprofitorloss.liabilityorequityinstrumentofanotherentity.Thecategoryconcerningfinancialassetsatfair(i) Financial assets valuethroughOCIwithrecyclingofcumulativegains and losses upon derecognition is not Initial recognition and measurement applicable for the Group. Financialassetsareclassified,atinitial Financial assets at amortized cost (debt recognition,asamortizedcost,fairvaluethrough instruments) othercomprehensiveincome(OCI),andfairvaluethroughprofitorloss. ThiscategoryisthemostrelevanttotheGroup.Theclassificationoffinancialassetsatinitial TheGroupmeasuresfinancialassetsatamortizedrecognitiondependsonthefinancialassets costifbothofthefollowingconditionsaremet:contractualcashflowcharacteristicsandthe ThefinancialassetisheldwithinabusinessGroupsbusinessmodelformanagingthem. modelwiththeobjectivetoholdfinancialassetsExceptfortradereceivables,forwhichtheGroup inordertocollectcontractualcashflows;hasappliedthepracticalexpedient,theGroup Andinitiallymeasuresafinancialassetatitsfairvalueplus,inthecaseofafinancialassetnotatfair Thecontractualtermsofthefinancialassetgivevaluethroughprofitorloss,transactioncosts. riseonspecifieddatestocashflowsthataresolely payments of principal and interest on the TradereceivablesforwhichtheGrouphas principal amount outstanding.applied the practical expedient are measured at thetransactionpricedeterminedunderIFRS15. FinancialassetsatamortizedcostareRefertotheaccountingpoliciesinsection2.3(f) subsequentlymeasuredusingtheEIRmethodRevenuefromcontractswithcustomers. andaresubjecttoimpairment.GainsandlossesarerecognizedinprofitorlosswhentheassetisForafinancialassettobeclassifiedandmeasured derecognized,modifiedorimpaired.atamortizedcostorfairvaluethroughOCI,itneedstogiverisetocashflowsthataresolely TheGroupsfinancialassetsatamortizedcostpaymentsofprincipalandinterest(SPPI)onthe includetradereceivables,cashandshort-termprincipalamountoutstanding.Thisassessmentis deposits including restricted cash and loan referredtoastheSPPItestandisperformedatan receivablesfromtheGovernmentofSuriname.instrumentlevel. Financial assets at fair value through profit or lossTheGroupsbusinessmodelformanaging Financialassetsatfairvaluethroughprofitorfinancialassetsreferstohowitmanagesits lossincludefinancialassetsheldfortrading,financialassetsinordertogeneratecashflows. financialassetsdesignateduponinitialrecognitionThebusinessmodeldetermineswhethercash atfairvaluethroughprofitorloss,orfinancialflowswillresultfromcollectingcontractualcash assetsmandatorilyrequiredtobemeasuredflows,sellingthefinancialassets,orboth. atfairvalue.FinancialassetsareclassifiedSubsequent measurement asheldfortradingiftheyareacquiredforthepurpose of selling or repurchasing in the near Forpurposesofsubsequentmeasurement, term.Derivatives,includingseparatedembeddedfinancialassetsareclassifiedinfourcategories: derivatives,arealsoclassifiedasheldfortradingFinancialassetsatamortizedcost(debt unlesstheyaredesignatedaseffectivehedginginstruments); instruments.Financialassetswithcashflowsthat are not solely payments of principal and interestareclassifiedandmeasuredatfairvaluethroughprofitorloss,irrespectiveofthe50 STAATSOLIE 2019 ANNUAL REPORT'