b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)amount and timing of revenue from contracts withsince the timing of the transfer of these goods or customers: servicesisatdiscretionofthecustomer,thisisnot I dentifying performance obligations in a bundledconsideredasasignificantfinancingcomponent.sale of oil products and transportation servicesDetermining method to estimate variable Insomecases,theGroupprovidestransportation considerationservices as part of contracts with customers whenSome contracts for the sale of oil products give providingoilproducts.TheGroupdetermined rise to a consideration payable to customers. In that transportation services are not considered acase the Group is not able to supply the customer distinct performance obligation since this servicewith oil products in the timeframe as agreed in the to the customer is not considered to be separatelycontractandbeforeitsstockoutdate,theGroupisidentifiablefromthesaleofoilproductstothe liable for the difference between the price of a third customer,theseareconsideredhighlyinterrelated. party for the related oil products and the price asI dentifying performance obligations in a bundledagreedinthecontract.However,sincetheGroupsaleofoilproductsandequipmentrental has no history of failing to deliver on contractual obligations,penaltiesarenotconsidereduponTheGroupmakesequipmentavailabletothe determination of the transaction price.customers as part of contracts with customersEstimates and assumptionswhenprovidingoilproducts.TheGroupdeterminedthatthesaleofoilproductsandequipmentrental Thekeyassumptionsconcerningthefutureandarenotcapableofbeingdistinct.Thesaleof other key sources of estimation uncertainty at oilproductsandequipmentrentalarehighly thereportingdate,thathaveasignificantriskofinterrelated,becausetheGroupwouldnotbeable causingamaterialadjustmenttothecarryingto sell the oil products if the customer declinedamounts of assets and liabilities within the equipmentrental. nextfinancialyear,aredescribedbelow.TheDetermining the timing of satisfaction of sale of oilGroup based its assumptions and estimates on products parameters available when the consolidated financialstatementswereprepared.ExistingTheGroupdeterminedthatforcontractsthat circumstances and assumptions about future areconsideredconsignmentarrangements, developments,however,maychangeduetothe obligation is to transfer the product to themarket changes or circumstances arising beyond consignee.TheGroupwillnotrelinquishcontrol the control of the Group. Such changes are of the consigned product until the product is soldreflectedintheassumptionswhentheyoccur.to the end-customer. Consignees do not haveFunctional currency anyobligationtopayfortheproduct,otherthanto pay the Group the agreed-upon portion of theThefunctionalcurrencyfortheparententityandsale price once the consignee sells the producteachofitssubsidiaries,isthecurrencyofthetoathirdparty.Asaresult,forconsignment primary economic environment in which the entity arrangements,revenueisrecognizedwhenthe operates.ThefunctionalcurrencyforGOw2isproducts are delivered to the end customer andSurinamesedollar(SRD).Thefunctionalcurrencytheperformanceobligationhasbeensatisfied. ofStaatsolie,SPCSandVentrinistheUSdollarConsiderationofsignificantfinancingcomponent (US$). Determination of functional currency may in a contractinvolvecertainjudgementstoidentifytheprimaryeconomic environment and the parent entity Generally,theGroupprovidesshort-termadvances reconsiders the functional currency of its entities if to its customers. Using the practical expedient inthere is a change in events and conditions which IFRS15,theGroupdoesnotadjustthepromised determined the primary economic environment.amount of consideration for the effects of aProvision for expected credit losses of trade significantfinancingcomponentifitexpects,at receivables contractinception,thattheperiodbetweenthetransfer of the promised good or service to theTheGroupusesaprovisionmatrixtocalculatecustomer and when the customer pays for thatECLsfortradereceivables.Theprovisionmatrixisgood or service will be one year or less. based on its historical observed default rates over TheGroupalsoreceiveslong-termadvancesfrom the expected life of the trade receivables and is customersforthesaleofoilproducts.However, adjustedforforward-lookingestimates.71'