b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)unless they are designated as effective hedgingTheGrouphastransferreditsrightstoreceiveinstruments.Financialassetswithcashflows cashflowsfromtheassetorhasassumedanthat are not solely payments of principal andobligationtopaythereceivedcashflowsinfullinterestareclassifiedandmeasuredatfair without material delay to a third party under a valuethroughprofitorloss,irrespectiveofthe pass-througharrangement;andeither(a)thebusiness model. Notwithstanding the criteria forGroup has transferred substantially all the risks debtinstrumentstobeclassifiedatamortized andrewardsoftheasset,or(b)theGrouphascostoratfairvaluethroughOCI,asdescribed neither transferred nor retained substantially above,debtinstrumentsmaybedesignatedatfair alltherisksandrewardsoftheasset,buthasvaluethroughprofitorlossoninitialrecognitionif transferred control of the asset.doingsoeliminates,orsignificantlyreduces,anaccounting mismatch.WhentheGrouphastransferreditsrightstoreceivecashflowsfromanassetorhasenteredFinancialassetsatfairvaluethroughprofitor intoapass-througharrangement,itevaluatesloss are carried in the consolidated statement ofif,andtowhatextent,ithasretainedtherisksfinancialpositionatfairvaluewithnetchangesin andrewardsofownership.Whenithasneitherfairvaluerecognizedintheconsolidatedstatement transferred nor retained substantially all the risks ofprofitorloss. andrewardsoftheasset,nortransferredcontroloftheasset,theGroupcontinuestorecognizetheFinancial assets designated at fair value throughtransferred asset to the extent of its continuing OCI (equity instruments) involvement.Inthatcase,theGroupalsoUponinitialrecognition,theGroupcanelect recognizesanassociatedliability.Thetransferredtoclassifyirrevocablyitsequityinstrumentsas asset and the associated liability are measured on investmentasequityinstrumentsdesignatedatfair abasisthatreflectstherightsandobligationsthatvaluethroughOCIwhentheymeetthedefinition the Group has retained.ofequityunderIAS32FinancialInstruments: Continuing involvement that takes the form of a Presentationandarenotheldfortrading.The guarantee over the transferred asset is measured classificationisdeterminedonaninstrument-by- at the lower of the original carrying amount of the instrument basis. asset and the maximum amount of consideration Gainsandlossesonthesefinancialassetsare thattheGroupcouldberequiredtorepay.neverrecycledtoprofitorloss.Dividendsare Impairment of financial assetsrecognizedasotherincomeintheconsolidatedstatementofprofitorlosswhentherightof Further disclosures if applicable and relating to paymenthasbeenestablished,exceptwhenthe impairmentoffinancialassetsarediscussedintheGroupbenefitsfromtheproceedsasarecovery respectivedisclosuresforsignificantassumptionsofpartofthecostofthefinancialasset,inwhich andtradereceivables,includingcontractassets.casesuchgainsarerecordedinOCI.Equityinstruments designated at fair value through OCITheGrouprecognizesanallowanceforexpectedarenotsubjecttoimpairmentassessment. creditlosses(ECLs)foralldebtinstrumentsnotheldatfairvaluethroughprofitorloss.ECLsareTheGroupelectedtoclassifyirrecoverablyits based on the difference between the contractual investmentinlocallylistedequitysecuritiesunder cashflowsdueinaccordancewiththecontractthis category.andallthecashflowsthattheGroupexpectstoreceive,discountedatanapproximationoftheDerecognition originaleffectiveinterestrate.TheexpectedcashAfinancialasset(or,whereapplicable,apartofa flowswillincludecashflowsfromthesaleoffinancialassetorpartofagroupofsimilarfinancial collateral held or other credit enhancements that assets)isprimarilyderecognized(i.e.,removed are integral to the contractual terms. fromtheGroupsconsolidatedstatementof ECLsarerecognizedintwostages.Forcreditfinancialposition)when: exposures for which there has not been a Therightstoreceivecashflowsfromtheasset significantincreaseincreditrisksinceinitialhave expired; recognition,ECLsareprovidedforcreditlossesthat result from default events that are possibleOrwithinthenext12-months(a12-monthECL).Forthose credit exposures for which there has been asignificantincreaseincreditrisksinceinitialrecognition,alossallowanceisrequiredforcredit66 STAATSOLIE 2020 ANNUAL REPORT'