b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)Contract liabilities Non-monetary assets and liabilities are translated A contract liability is the obligation to transferusing exchange rates that existed when the goods or services to a customer for which thevalues were determined. Exchange differences Group has received consideration (or an amounton settlement or translation of monetary items are of consideration is due) from the customer. If arecognizedintheconsolidatedstatementofprofitcustomer pays consideration before the Groupor loss.transfersgoodsorservicestothecustomer,a (ii) Foreign subsidiariescontractliabilityisrecognizedwhenthepaymentismade,orthepaymentisdue(whicheverisearlier). As at the reporting date for consolidation Contractliabilitiesarerecognizedasrevenue purposes,theassetsandliabilitiesofforeignwhen the Group performs under the contract.subsidiaries are translated into the presentation currency of the Group at the rate of exchange i.Other income rulingatthereportingdateand,theirstatementsofprofitorlossaretranslatedattheweightedInterest income averageexchangeratesfortheyear.TheForallfinancialinstrumentsmeasuredat exchange differences arising on the translation amortizedcost,interestincomeisrecordedusing are taken directly to other comprehensive income. theeffectiveinterestrate(EIR).TheEIRisthe Ondisposalofaforeignentity,thedeferredrate that exactly discounts the estimated futurecumulativeamountrecognizedinequityrelatingcashreceiptsovertheexpectedlifeofthefinancial tothatparticularforeignentityisrecognizedintheinstrumentorashorterperiod,whereappropriate, consolidatedstatementofprofitorloss.tothenetcarryingamountofthefinancialasset. k. TaxesInterestincomeisincludedinfinanceincomeintheconsolidatedstatementofprofitorloss. Current income tax assets and liabilities for the current period are measured at the amount Dividends expected to be recovered from or paid to the RevenueisrecognizedwhentheGroupsright taxationauthorities.Thetaxratesandtaxlawstoreceivethepaymentisestablished,whichis used to compute the amount are those that are generally when shareholders approve the dividend. enacted,orsubstantivelyenactedatthereportingdate in the countries where the Group operates j.Foreign currenciesand generates taxable income. Current income taxrelatingtoitemsrecognizeddirectlyinequityTheconsolidatedfinancialstatementsare isrecognizedinequityandnotinthestatementofpresentedinUnitedStatesdollars(US$),which profitorloss.ManagementperiodicallyevaluatesisalsotheGroupsfunctionalandpresentation positions taken in the tax returns with respect to currency. Each entity in the Group determines itssituations in which applicable tax regulations are own functional currency and items included in thesubjecttointerpretationandestablishesprovisionsfinancialstatementsofeachentityismeasured where appropriate.usingthatfunctionalcurrency.WithintheGroup, Deferred taxGOw2sfunctionalcurrencychangedfromUS$totheSurinamesedollars(SRD)effectiveJanuary Deferred tax is provided using the liability method 1,2016.Thischangearoseduetothechange on temporary differences between the tax bases of inmajorcontractspreviouslydenominatedin assets and liabilities and their carrying amounts for US$toSRD.Therefore,asitrelatestoGOw2, financialreportingpurposesatthereportingdate.transactions are initially recorded in the functional currency (being SRD) at the rate of exchangeDeferredtaxliabilitiesarerecognizedforallruling at the date of the transaction. taxabletemporarydifferencessubjecttocertain(i) Transactions and balances specificexceptions.Transactionsinforeigncurrenciesareinitially Deferredtaxassetsarerecognizedforallrecorded by the Group entities at their respectivedeductible temporary differences and carry-functional currency rate ruling at the date offorwardofunusedtaxlosses,totheextentthatitisthetransaction.Monetaryassetsandliabilities probablethatfuturetaxableprofitwillbeavailabledenominated in foreign currencies are re- against which the temporary differences and carry translated at the functional currency rate offorwardofunusedtaxlossescanbeutilized.exchange ruling at the reporting date.61'