b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)Other intangible assetsKey assumptions used in value-in-use calculations ThebalanceasatDecember31,2020representscapitalizedcomputersoftware. ThecalculationofVIUfortheGOw2CGUismostIn2020SAPSuccessFactorsandSAPProject sensitivetothefollowingkeyassumptions:SystemwerecapitalizedandarebeingamortizedGross marginon a straight-line basis over the remaining useful life of81/2yearsand41/2yearsrespectively.Discount rates Othersoftwareconsistsof:ProcessHazardOil pricesAnalysisSoftwareandMechanicalIntegrity MarketshareduringthebudgetperiodSoftware tool. Thesewerecapitalizedforthedownstreamandare Growthrateusedtoextrapolatecashflowsamortizedonastraight-linebasisoverausefullife beyond the budget periodof 5 years. Gross marginsImpairment testing of goodwillGross margins are based on average values TheGroupperformedtheannualimpairmenttest achieved in the three years preceding the start of asatDecember31,2020. thebudgetperiod.Theseareincreasedoverthebudget period for anticipated improvements in the Goodwillacquiredthroughbusinesscombinations efficiencyofoperations.Anincreaseof2%(2019:withindefinitelifehasbeenallocatedtooneCGU 2%) per annum was applied based on economic (GOw2).Thecarryingvalue(netassetsincluding growth(quantities)oftheCGU.Goodwill)ofthisCGUisUS$42,075atDecember Discount rates 31,2020(US$49,682atDecember31,2019).TherecoverableamountoftheGOw2CGUof Discount rates represent the current market US$56,473atDecember31,2020(US$63,507 assessmentoftherisksspecifictoeachCGU,asatDecember31,2019)hasbeendetermined taking into consideration the time value of money based on a value-in-use (VIU) calculation usingand individual risks of the underlying assets that cashflowprojectionsfromfinancialbudgets havenotbeenincorporatedinthecashflowapproved by the responsible director covering aestimates.Thediscountratecalculationisbasedfive-yearperiod.Theprojectedcashflowshave onthespecificcircumstancesoftheGroupandbeenupdatedtoreflectthedecreaseddemandfor its operating segments and is derived from its finishedoilproducts. WACC,withappropriateadjustmentsmadetoreflecttherisksspecifictotheCGU.TheThepost-taxweightedaveragecostofcapital WACCconsidersbothdebtandequity,weighted(WACC)discountrateappliedtothecashflow 32.48%(2019:36.86%)debtversus67.52%projectionsis12.02%(2019:12.10%),andcash (2019:63.14%)equity,duetothedebt-to-equityflowsbeyondthefive-yearperiodareextrapolated structureoftheGroup.Thecostofequityisusinga2%(2019:2%)growthratethatisthe derived from the expected return on investment same as the long-term average fuel consumptionbytheGroupsinvestors.Thecostofdebtisgrowth rate for the petroleum products sector.based on the interest-bearing borrowings the Asaresultoftheanalysis,managementdidnot Groupisobligedtoservice.Segment-specificidentifyimpairmentforthisCGU.TheGOw2CGU risk is incorporated by applying individual beta forms part of the downstream reportable segment.factors.ThebetafactorsareevaluatedannuallyApplyingapre-taxWACCdiscountrate18.02% based on publicly available market data.(2019:17.71%)tothecashflowprojections Oil pricesprovides the same VIU for the CGU.Longtermforecastedoilpricesarebasedonmanagementsestimatesandavailablemarketdata.101'