b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)losses expected over the remaining life of theFinancial liabilities designated upon initial exposure,irrespectiveofthetimingofthedefault recognitionatfairvaluethroughprofitorlossare(alifetimeECL). designatedattheinitialdateofrecognition,andFortradereceivablesandcontractassets,the onlyifthecriteriainIFRS9aresatisfied.TheGroupappliesasimplifiedapproachincalculating GrouphasnotdesignatedanyfinancialliabilityasECLs.Therefore,theGroupdoesnottrack atfairvaluethroughprofitorloss.changesincreditrisk,butinsteadrecognizesa Loans and borrowingslossallowancebasedonlifetimeECLsateachreportingdate.TheGrouphasestablisheda ThisisthecategorymostrelevanttotheGroup.provision matrix that is based on its historical creditAfterinitialrecognition,interestbearingloanslossexperience,adjustedforforward-looking andborrowingsaresubsequentlymeasuredatfactorsspecifictothedebtorsandtheeconomic amortizedcostusingtheEIRmethod.Gainsenvironment.andlossesarerecognizedintheconsolidatedstatementofprofitorlosswhentheliabilitiesTheGroupconsidersafinancialassetindefault arederecognizedaswellasthroughtheEIRwhencontractualpaymentsare90dayspast amortizationprocess.Amortizedcostiscalculateddue.However,incertaincases,theGroup by taking into account any discount or premium on mayalsoconsiderafinancialassettobein acquisitionandfeesorcoststhatareanintegraldefault when internal or external informationpartoftheEIR.TheEIRamortizationisincludedindicates,thattheGroupisunlikelytoreceivethe infinancecostsintheconsolidatedstatementofoutstandingcontractualamountsinfull,before profitorloss.Thiscategorygenerallyappliestoconsidering any credit enhancements held by theinterest-bearing loans and borrowings.Group.Afinancialassetiswrittenoffwhenthereis no reasonable expectation of recovering theDerecognitioncontractualcashflows. Afinancialliabilityisderecognizedwhenthe(ii) Financial liabilities obligation under the liability is discharged or cancelledorexpires.WhenanexistingfinancialInitial recognition and measurementliability is replaced by another from the same Financialliabilitiesareclassified,atinitial lenderonsubstantiallydifferentterms,orthetermsrecognition,asfinancialliabilitiesatfairvalue ofanexistingliabilityaresubstantiallymodified,throughprofitorloss,loansandborrowingsand suchanexchangeormodificationistreatedaspayables. the derecognition of the original liability and the recognitionofanewliability.ThedifferenceintheAllfinancialliabilitiesarerecognizedinitiallyatfair respectivecarryingamountsisrecognizedinthevalueand,inthecaseofloansandborrowingsand consolidatedstatementofprofitorloss.payables,netofdirectlyattributabletransaction (iii) Offsetting of financial instruments costs.TheGroupsfinancialliabilitiesincludetradeandotherpayables,loansandborrowings Financialassetsandfinancialliabilitiesareoffsetincluding bank overdrafts. and the net amount is reported in the consolidated statementoffinancialpositionifthereisacurrentlySubsequent measurementenforceablelegalrighttooffsettherecognizedThemeasurementoffinancialliabilitiesdepends amounts and there is an intention to settle on a net ontheirclassification,asdescribedbelow: basis,torealizetheassetsandsettletheliabilitiessimultaneously.Financial liabilities at fair value through profit or loss o. Derivative Financial instruments Financialliabilitiesatfairvaluethroughprofitor TheGroupentersforwardcurrencycontractstolossincludefinancialliabilitiesheldfortrading manage its foreign currency exposures. andfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss. TherelatedderivativeinstrumentisinitiallyFinancialliabilitiesareclassifiedasheldfortrading recorded at fair value on the date on which the if they are incurred for the purpose of repurchasingcontractisenteredintoandaresubsequentlyin the near term.remeasuredatfairvalue.ThederivativesarecarriedasfinancialassetswhenthefairvalueisGains or losses on liabilities held for trading arepositiveandasfinancialliabilitieswhenthefairrecognizedinthestatementofprofitorloss. value is negative.67'