b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)directcostsincurred,andleasepaymentsmade TheGroupdeterminestheleasetermastheat or before the commencement date less anynon-cancellabletermofthelease,togetherwithleaseincentivesreceived.UnlesstheGroupis anyperiodscoveredbyanoptiontoextendthereasonablycertaintoobtainownershipofthe leaseifitisreasonablycertaintobeexercised,orleasedassetattheendoftheleaseterm,the anyperiodscoveredbyanoptiontoterminatetherecognizedright-of-useassetsaredepreciated lease,ifitisreasonablycertainnottobeexercised.onastraight-linebasisovertheshorterofitsestimatedusefullifeandtheleaseterm.Right-of- TheGrouphastheoption,undersomeofitsuseassetsaresubjecttoimpairment. leases to lease the assets for additional terms of threetofiveyears.TheGroupappliesjudgementLeaseliabilities inevaluatingwhetheritisreasonablycertaintoAtthecommencementdateofthelease,the exercisetheoptiontorenew.Thatis,itconsidersGrouprecognizesleaseliabilitiesmeasuredatthe allrelevantfactorsthatcreateaneconomicpresentvalueofleasepaymentstobemadeover incentiveforittoexercisetherenewal.Afterthetheleaseterm.Theleasepaymentsincludefixed commencementdate,theGroupreassessesthepayments(includingin-substancefixedpayments) leasetermifthereisasignificanteventorchangelessanyleaseincentivesreceivable,variablelease incircumstancesthatiswithinitscontrolandpaymentsthatdependonanindexorarate,and affects its ability to exercise (or not to exercise) amountsexpectedtobepaidunderresidualvalue theoptiontorenew(e.g.,achangeinbusinessguarantees.Theleasepaymentsalsoincludethe strategy).exercise price of a purchase option reasonablyTheGroupincludedtherenewalperiodascertain to be exercised by the Group and paymentspart of the lease term for leases of plant and ofpenaltiesforterminatingalease,ifthelease machineryduetothesignificanceoftheseassetstermreflectstheGroupexercisingtheoptionto toitsoperations.Theseleaseshaveashortterminate.Thevariableleasepaymentsthatdo non-cancellableperiod(i.e.,threetofiveyears)notdependonanindexoraratearerecognized andtherewillbeasignificantnegativeeffectonasexpenseintheperiodonwhichtheeventor productionifareplacementisnotreadilyavailable.condition that triggers the payment occurs. TherenewaloptionsforleasesofmotorvehiclesIncalculatingthepresentvalueofleasepayments, werenotincludedaspartoftheleasetermtheGroupusestheincrementalborrowingrateat because the Group has a policy of leasing motor the lease commencement date if the interest ratevehiclesfornotmorethanfiveyearsand,hence,implicit in the lease is not readily determinable.notexercisinganyrenewaloptions.Afterthecommencementdate,theamountof IFRIC Interpretation 23 Uncertainty over leaseliabilitiesisincreasedtoreflecttheaccretion Income Tax Treatmentof interest and reduced for the lease payments made.Inaddition,thecarryingamountoflease TheInterpretationaddressestheaccountingliabilitiesisremeasuredifthereisamodification, forincometaxeswhentaxtreatmentsinvolveachangeintheleaseterm,achangeinthein- uncertainty that affects the application of IAS 12 substancefixedleasepaymentsorachangeinthe IncomeTaxes.Itdoesnotapplytotaxesorleviesassessment to purchase the underlying asset. outsidethescopeofIAS12,nordoesitspecificallyincluderequirementsrelatingtointerestandShort-termleasesandleasesoflow-valueassets penaltiesassociatedwithuncertaintaxtreatments.TheGroupappliestheshort-termlease TheInterpretationspecificallyaddressestherecognition exemption to its short-term leasesfollowing:ofmachineryandequipment(i.e.,thoseleases Whetheranentityconsidersuncertaintaxthathavealeasetermof12monthsorlessfrom treatments separately.the commencement date and do not contain a purchaseoption).Italsoappliestheleaseoflow- Theassumptionsanentitymakesaboutthevalueassetsrecognitionexemptiontoleasesof examination of tax treatments by taxation officeequipmentthatareconsideredoflowvalue. authorities.Leasepaymentsonshort-termleasesandleases Howanentitydeterminestaxableprofit(taxloss),oflow-valueassetsarerecognizedasexpenseon taxbases,unusedtaxlosses,unusedtaxcreditsastraight-linebasisovertheleaseterm. and tax rates.Significantjudgementindeterminingthelease Howanentityconsiderschangesinfactsandtermofcontractswithrenewaloptions circumstances.61'