b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)2.3 SUMMARY OF SIGNIFICANT ACCOUNTINGb. Joint arrangementsPOLICIES AjointarrangementisanarrangementoverwhichThefollowingarethesignificantaccounting twoormorepartieshavejointcontrol.Jointcontrolpolicies applied in preparing its consolidatedis the contractually agreed sharing of control financialstatements: over an arrangement which exists only when a. Intangible assets and goodwillthe decisions about the relevant activities (being thosethatsignificantlyaffectthereturnsoftheIntangibleassetsacquiredseparatelyare arrangement)requiretheunanimousconsentofmeasuredoninitialrecognitionatcost.The the parties sharing control. costofintangibleassetsacquiredinabusiness TheGroupsjointarrangementsareoftwotypes:combination is their fair value at the date of acquisition.Followinginitialrecognition,intangible (i) Joint operations assets are carried at cost less any accumulated amortization(calculatedonastraight-line InApril2020,Staatsolieenteredintoanbasis over their useful lives) and accumulatedUnincorporatedJointVenture(UJV)withRosebelimpairmentlosses,ifany. GoldMinesN.V.(Rosebel)namedPikinSaramacca.Theusefullivesofintangibleassetsareassessedaseitherfiniteorindefinite. TheUJVisgovernedbytheMineralAgreementdatedApril7,1994,asamended,theUJVIndefinitelivedintangibles,suchasgoodwill, agreement and the Accounting manual both arenotamortized,insteadtheyaretestedfor signedonApril22,2020.InthisUJV,theimpairmentannuallyasaminimum,orwhenthere participatinginterestis30%forStaatsolieand70%are indicators of impairment. for Rosebel and the latter has been appointed as WhentheGroupacquiresabusiness,itassesses theUJVoperator.thefinancialassetsandliabilitiesassumedfor Rosebel,establishedonMay8,2002,isaappropriateclassificationanddesignationin subsidiaryofIAMGOLDCorporation.accordancewiththecontractualterms,economiccircumstances and pertinent conditions as at theTheUJVPikinSaramaccaencompassestheacquisitiondate.Totheextentthatthecostof exploration,development,andexploitationofgoldacquiringanequityinvestmentexceedsthefair intheUJVareaexceptfortheGrossRosebelvalueofthenetassetsacquired,theexcessis Concession.CurrentlytheUJVPikinSaramaccarecordedasgoodwill.Currently,theGroupcarries comprisesof7explorationrightsand1exploitationgoodwillonthebooksrelatedtotheacquisitionof right,namelySaramaccaConcession.GOw2whichoccurredinfiscalyear2011. TheSaramaccaConcessionislocated25Intangibleassetswithfinitelivesareamortized kilometerssouthwestofitsRosebelMillingover the useful economic life and assessed forfacilityand125kilometerssouthofParamaribo,impairment whenever there is an indication that theSuriname. intangibleassetmaybeimpaired.Theamortization Ajointoperationisatypeofjointarrangementperiodandtheamortizationmethodforan wherebythepartiesthathavejointcontrolofintangibleassetwithafiniteusefullifeisreviewedat the arrangement have rights to the assets and least at the end of each reporting period. Changesobligationsfortheliabilities,relatingtothein the expected useful life or the expected patternarrangement.ofconsumptionoffutureeconomicbenefitsembodied in the asset are considered to modify theInrelationtoitsinterestsinjointoperations,theamortizationperiodormethod,asappropriate,and Grouprecognizesits:are treated as changes in accounting estimates. Theamortizationexpenseonintangibleassetswith Assets,includingitsshareofanyassetsheldfinitelivesisrecognizedinthestatementofprofitor jointly.loss in the expense category that is consistent with the function of the intangible assets. Liabilities,includingitsshareofanyliabilitiesGains or losses arising from derecognition ofincurredjointly.anintangibleasset,ifany,aremeasuredastheRevenue from the sale of its share of the outputdifference between the net disposal proceeds andarisingfromthejointoperation.thecarryingamountoftheassetandarerecognizedinthestatementofprofitorlosswhentheassetis Share of the revenue from the sale of the output derecognized. bythejointoperation.56 STAATSOLIE 2020 ANNUAL REPORT'