b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)Anitemofproperty,plantandequipmentandany Power plant assetssignificantpartinitiallyrecognizedisderecognizedupon disposal or when no future economicThepowerplantassetsaredepreciatedonabenefitsareexpectedfromitsuseordisposal. straight-linebasisandasfollows:Any gain or loss arising on derecognition of the asset (calculated as the difference between the netAsset Category Percentage disposal proceeds and the carrying amount of the asset) is included in the consolidated statement ofBuilding hall 5%profitorlosswhentheassetisderecognized.Productionhall 10%Theassetsresidualvalues,usefullivesand Furniture 33.33%methodsofdepreciation/amortizationarereviewedateachreportingperiodandadjusted Tankbattery 20%prospectively,ifappropriate.Powerhouseequipment 5-50%(iii) Major maintenance, refits, inspection and repairs Other units5-20%Expenditureonmajormaintenancerefits, Corporate & Other fixed assetsinspections or repairs comprises the cost of replacementassetsorpartsofassets,inspection Landandfreeholdestatesarenotdepreciated.costsandoverhaulcosts.Whereanasset,orpart Otherpropertiesoutsidetheproductionfieldareof an asset that was separately depreciated andbeingamortizedonastraight-linebasis.Theisnowwrittenoff,isreplacedanditisprobable annual depreciation percentages are as follows; thatfutureeconomicbenefitsassociatedwith WhereapplicablearesidualvalueistakenintotheitemwillflowtotheGroup,theexpenditure consideration.iscapitalized.Wherepartoftheassetreplacedwas not separately considered as a componentAsset Category Percentage andthereforenotdepreciatedseparately,thereplacement value is used to estimate theBuilding hall 10%carrying amount of the replaced asset(s) and is immediately written off. Inspection costsTelecommunicationequipment 20%associatedwithmajormaintenanceprogramsare DockTLF 4%capitalizedandamortizedovertheperiodtothenext inspection. All other day-to-day repairs andOil tanker 10%maintenance costs are expensed as incurred.Drilling machinery 20%Refinery, power plant and other fixed assetsHeavyequipment 20%Therefinery,powerplantandotherfixedassets Transportationequipment 33.33%arevaluedatcost.Thecapitalizedcostsoftheseassetsaredepreciatedonastraight-linebasis,taking into account the estimated useful lifetime ofAnitemofproperty,plantandequipmentisthesignificantcomponentsoftherefinery. derecognizedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseorProjects in progress disposal. Any gain or loss arising on de-recognition Projectsinprogressrelatestoworkinprogress, of the asset (calculated as the difference between for which at the date of completion the cost isthe net disposal proceeds and the carrying amount capitalizedtotheappropriatecategoryofproperty of the asset) is included in the consolidated plantandequipment.Projectinprogressisnot statementofprofitorlosswhentheassetisdepreciated. derecognized.Theresidualvalues,usefullivesandmethodsofdepreciationofproperty,plantandequipmentarereviewedateachfinancialyearendandadjustedprospectively,ifappropriate.64 STAATSOLIE 2020 ANNUAL REPORT'