b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)Deferred tax 2.4.1 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURESJudgmentisrequiredtodeterminewhicharrangements are a tax on income as opposedNew and amended standards and toanoperatingcost.Judgmentisalsorequired interpretations to determine whether deferred tax assets areTheGroupappliedforthefirst-timecertainrecognizedintheconsolidatedstatementof standardsandamendments,whichareeffectivefinancialposition.Deferredtaxassets,including forannualperiodsbeginningonorafter1Januarythosearisingfromunutilizedtaxlosses,require 2020.TheGrouphasnotearlyadoptedanyotherthe Group to assess the likelihood that the Groupstandard,interpretationoramendmentthathaswillgeneratesufficienttaxableearningsinfuture been issued but is not yet effective.periods,toutilizerecognizeddeferredtaxassets.Judgmentisalsorequiredinrespectofthe Amendments to IFRS 3: Definition of a applicationofexistingtaxlawsineachjurisdiction. BusinessAssumptions about the generation of futureTheamendmenttoIFRS3BusinessCombinationstaxableprofitsdependonmanagements clarifiesthattobeconsideredabusiness,anestimatesoffuturecashflows.Theseestimates integratedsetofactivitiesandassetsmustinclude,of future taxable income are based on forecastataminimum,aninput,andasubstantiveprocesscashflowsfromoperations(whichareimpacted that,together,significantlycontributetotheabilitybyproductionandsalesvolumes,commodity tocreateoutput.Furthermore,itclarifiesthataprices,reserves,operatingcosts,closureand business can exist without including all the inputs rehabilitationcosts,capitalexpenditure,dividends, andprocessesneededtocreateoutputs.Theseand other capital management transactions).amendments had no impact on the consolidated Totheextentthatfuturecashflowsandtaxable financialstatementsoftheGroupbutmayimpactincomediffersignificantlyfromestimates,the future periods should the Group enter any business abilityoftheGrouptorealizethenetdeferredtax combinations.assets recorded at the reporting date could be impacted.Inaddition,futurechangesintaxlaws Amendments to IFRS 7, IFRS 9 and IAS 39 inthejurisdictionsinwhichtheGroupoperates Interest Rate Benchmark Reformcould limit the ability of the Group to obtain tax deductions in future periods.TheamendmentstoIFRS9andIAS39Financial Oil properties Instruments: Recognition and Measurement provideanumberofreliefs,whichapplytoallTheapplicationoftheGroupsaccountingpolicy hedging relationships that are directly affected forexplorationandevaluationexpenditurerequires by interest rate benchmark reform. A hedging judgmenttodeterminewhetherfutureeconomic relationship is affected if the reform gives rise to benefitsarelikelyfromfutureeitherexploitation uncertaintyaboutthetimingand/oramountoforsale,orwhetheractivitieshavenotreacheda benchmark-basedcashflowsofthehedgeditemorstage which permits a reasonable assessment ofthehedginginstrument.Theseamendmentshavetheexistenceofreserves.Thedeterminationof noimpactontheconsolidatedfinancialstatementsreserves and resources is an estimation processof the Group as it does not have any interest rate that involves varying degrees of uncertaintyhedge relationships.dependingonhowtheresourcesareclassified.TheseestimatesdirectlyimpactwhentheGroupdefers exploration and evaluation expenditure. Thedeferralpolicyrequiresmanagementtomake certain estimates and assumptions about future events and circumstances whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available.If,afterexpenditureiscapitalized,information becomes available suggesting that the recoveryoftheexpenditureisunlikely,therelevantcapitalizedamountiswrittenoffintheconsolidatedstatementofprofitorlossintheperiodwhenthenew information becomes available.75'