b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)(electricity and steam) to the customer and once(iii) Warranty obligationsproduct has passed the meters the customers obtain control of the product. TheGrouptypicallyprovideswarrantiesforguaranteeofquality,providingthecustomeraGoldrevenueisbeingrecognizedwhenthe timeframeoffifteen(15)daysafterdeliverytoperformance obligation of transferring goldraise a claim in regard to shortages and defect in inventorytothecustomerissatisfied,which quality/quantityofdeliveredgoods.UnderIFRSgenerally occurs upon transfer of gold bullion15 this is not considered an additional good or creditstothecustomer,asthisisthepointat service to the client and is therefore considered to which the customer obtains the ability to direct thebeanassurance-typewarranty.Whenmaterial,use and obtain substantially all of the remainingthese types of warranties are accounted for as benefitsofownershipoftheasset.Thiscan warranty obligations and the estimated cost of occurwhengolddorisdeliveredtothebuyers satisfying them is accrued in accordance with the refinery,upondeliveryofthegolddor,orupon requirementsinIAS37Provisions,Contingentbeingloadedtoairtransportandflightdeparturein LiabilitiesandContingentAssets.RefertotheSuriname. accounting policy on warranty provisions in section t.Provisions.(i) Variable consideration If the consideration in a contract includes a(iv) Transportation services variableamount,theGroupestimatestheamount Insomecases,theGroupprovidestransportationof consideration to which it will be entitled inservices as part of contracts with customers when exchange for transferring the goods to theprovidingoilproducts.Transportationservicesarecustomer.Thevariableconsiderationisestimated not considered a distinct performance obligation at contract inception and constrained until it issince this service to the client is not considered highlyprobablethatasignificantrevenuereversal tobeseparatelyidentifiablefromthesaleofoilintheamountofcumulativerevenuerecognized productstothecustomer,theseareconsideredwill not occur when the associated uncertaintyhighly interrelated. withthevariableconsiderationissubsequentlyresolved. Some contracts for the sale of oil(v) Equipment rental products give rise to a consideration payable toTheGroupmakesequipmentavailabletothecustomers.customers as part of contracts with customers Consideration payable to customers whenprovidingoilproducts.Equipmentrentalisnot considered a separate performance obligation Consideration payable to a customer includessince this service to the client is not considered cashamountsthatanentitypays,orexpects tobeseparatelyidentifiablefromthesaleofoiltopay,tothecustomer.TheGrouphassome productstothecustomer,theseareconsideredcontracts for the sale of oil products that give risehighly interrelated. to a penalty when failing to perform according to theagreeduponterms.Theconsiderationpayable (vi) Contract balances to customers is accounted for as a reduction of theContract assetstransactionpriceand,therefore,ofrevenue.(ii) Significant financing componentA contract asset is the right to consideration in exchange for goods or services transferred to the Generally,theGroupprovidesshort-termadvances customer.If the Group performs by transferring to its customers. Using the practical expedient ingoods or services to a customer before the IFRS15,theGroupdoesnotadjustthepromised customer pays consideration or before payment is amount of consideration for the effects of adue,acontractassetisrecognizedfortheearnedsignificantfinancingcomponentifitexpects,at consideration that is conditional. contractinception,thattheperiodbetweenthe Trade receivables transfer of the promised good or service to the customer and when the customer pays for thatAreceivablerepresentstheGroupsrighttoangood or service will be one year or less. amount of consideration that is unconditional TheGroupalsoreceiveslong-termadvancesfrom (i.e.,onlythepassageoftimeisrequiredbeforecustomersforthesaleofoilproducts.However, payment of the consideration is due). if the timing of the transfer of these goods or servicesisatdiscretionofthecustomer,thisisnotconsideredasasignificantfinancingcomponent.60 STAATSOLIE 2020 ANNUAL REPORT'