b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)m. Borrowing costsSubsequent measurementBorrowing costs directly attributable to theForpurposesofsubsequentmeasurement,acquisition,constructionorproductionofanasset financialassetsareclassifiedinfourcategories:that necessarily takes a substantial period of time to get ready for its intended use or sale areF inancialassetsatamortizedcost(debtcapitalizedaspartofthecostoftherespective instruments);asset. All other borrowing costs are expensed inFinancial assets at fair value through OCI with the period in which they occur. Borrowing costsrecycling of cumulative gains and losses (debt consist of interest and other costs that an entityinstruments);incurs in connection with the borrowing of funds. Borrowing costs incurred on or after the dateFinancial assets designated at fair value through oftransitionforalleligiblequalifyingassetsare OCI with no recycling of cumulative gains and capitalized. lossesuponderecognition(equityinstruments);n. Financial instrumentsinitial recognitionFinancialassetsatfairvaluethroughprofitorloss.and subsequent measurementAfinancialinstrumentisanycontractthatgives Thecategoryconcerningfinancialassetsatfairrisetoafinancialassetofoneentityandafinancial value through OCI with recycling of cumulative liabilityorequityinstrumentofanotherentity. gains and losses upon derecognition is not applicable for the Group. (i) Financial assets Financial assets at amortized cost (debt Initial recognition and measurement instruments) Financialassetsareclassified,atinitial ThiscategoryisthemostrelevanttotheGroup.recognition,asamortizedcost,fairvaluethrough TheGroupmeasuresfinancialassetsatamortizedothercomprehensiveincome(OCI),andfairvalue costifbothofthefollowingconditionsaremet:throughprofitorloss. ThefinancialassetisheldwithinabusinessTheclassificationoffinancialassetsatinitial modelwiththeobjectivetoholdfinancialassetsrecognitiondependsonthefinancialassets inordertocollectcontractualcashflows.contractualcashflowcharacteristicsandthe ThecontractualtermsofthefinancialassetgiveGroupsbusinessmodelformanagingthem. riseonspecifieddatestocashflowsthatareExceptfortradereceivables,forwhichtheGroup solely payments of principal and interest on the hasappliedthepracticalexpedient,theGroup principal amount outstanding.initiallymeasuresafinancialassetatitsfairvalue Financialassetsatamortizedcostareplus,inthecaseofafinancialassetnotatfair subsequentlymeasuredusingtheEIRmethodvaluethroughprofitorloss,transactioncosts. andaresubjecttoimpairment.GainsandlossesTradereceivablesforwhichtheGrouphas arerecognizedinprofitorlosswhentheassetisapplied the practical expedient are measured atderecognized,modifiedorimpaired.the transaction price determined under IFRS 15.TheGroupsfinancialassetsatamortizedcostRefer to the accounting policies in section 2.3 (h)includetradereceivables,cashandshort-termRevenue from contracts with customers.deposits including restricted cash and loan Forafinancialassettobeclassifiedandmeasured receivables from the Government of Suriname.atamortizedcostorfairvaluethroughOCI,it Financial assets at fair value through profit or lossneedstogiverisetocashflowsthataresolelypaymentsofprincipalandinterest(SPPI)onthe Financialassetsatfairvaluethroughprofitorprincipalamountoutstanding.Thisassessmentis lossincludefinancialassetsheldfortrading,referredtoastheSPPItestandisperformedatan financialassetsdesignateduponinitialrecognitioninstrument level.atfairvaluethroughprofitorloss,orfinancialTheGroupsbusinessmodelformanaging assetsmandatorilyrequiredtobemeasuredfinancialassetsreferstohowitmanagesits atfairvalue.Financialassetsareclassifiedfinancialassetsinordertogeneratecashflows. asheldfortradingiftheyareacquiredfortheThebusinessmodeldetermineswhethercash purpose of selling or repurchasing in the near flowswillresultfromcollectingcontractualcash term.Derivatives,includingseparatedembeddedflows,sellingthefinancialassets,orboth. derivatives,arealsoclassifiedasheldfortrading65'