b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)IFRS 17 Insurance Contracts TheamendmentsareeffectiveforannualreportingInMay2017,theIASBissuedIFRS17Insurance periodsbeginningonorafter1January2023andContracts(IFRS17),acomprehensivenew mustbeappliedretrospectively.TheGroupisaccounting standard for insurance contractscurrently assessing the impact the amendments coveringrecognitionandmeasurement, will have on current practice and whether existing presentationanddisclosure.Onceeffective,IFRS loanagreementsmayrequirerenegotiation.17willreplaceIFRS4InsuranceContracts(IFRS Reference to the Conceptual Framework4)thatwasissuedin2005.IFRS17appliesto Amendments to IFRS 3alltypesofinsurancecontracts(i.e.,life,non-life,directinsuranceandre-insurance),regardlessof InMay2020,theIASBissuedAmendmentstothetypeofentitiesthatissuethem,aswellasto IFRS 3 Business Combinations - Reference to certainguaranteesandfinancialinstrumentswith theConceptualFramework.Theamendmentsarediscretionary participation features. intended to replace a reference to the Framework forthePreparationandPresentationofFinancialAfewscopeexceptionswillapply.Theoverall Statements,issuedin1989,withareferencetoobjectiveofIFRS17istoprovideanaccounting the Conceptual Framework for Financial Reporting model for insurance contracts that is more usefulissuedinMarch2018withoutsignificantlychangingand consistent for insurers. In contrast to theitsrequirements.requirementsinIFRS4,whicharelargelybasedon grandfathering previous local accountingTheBoardalsoaddedanexceptiontothepolicies,IFRS17providesacomprehensive recognition principle of IFRS 3 to avoid the issue of modelforinsurancecontracts,coveringallrelevant potentialday2gainsorlossesarisingforliabilitiesaccountingaspects.ThecoreofIFRS17isthe and contingent liabilities that would be within the generalmodel,supplementedby: scopeofIAS37orIFRIC21Levies,ifincurredseparately.Aspecificadaptationforcontractswithdirectparticipation features (the variable fee approach) Atthesametime,theBoarddecidedtoclarifyexisting guidance in IFRS 3 for contingent assets Asimplifiedapproach(thepremiumallocation that would not be affected by replacing the approach) mainly for short-duration contracts referencetotheFrameworkforthePreparationandIFRS17iseffectiveforreportingperiodsbeginning PresentationofFinancialStatements.onorafter1January2023,withcomparative Theamendmentsareeffectiveforannualreportingfiguresrequired.Earlyapplicationispermitted, periodsbeginningonorafter1January2022andprovidedtheentityalsoappliesIFRS9andIFRS apply prospectively.15onorbeforethedateitfirstappliesIFRS17.ThisstandardisnotapplicabletotheGroup. Property, Plant and Equipment: Proceeds before Intended UseAmendments to IAS 16Amendments to IAS 1: Classification of Liabilities as Current or Non-current InMay2020,theIASBissuedProperty,PlantandEquipmentProceedsbeforeIntendedInJanuary2020,theIASBissuedamendments Use,whichprohibitsentitiesdeductingfromthetoparagraphs69to76ofIAS1tospecifythe costofanitemofproperty,plantandequipment,requirementsforclassifyingliabilitiesascurrentor any proceeds from selling items produced while non-current.Theamendmentsclarify: bringing that asset to the location and condition Whatismeantbyarighttodefersettlement? necessary for it to be capable of operating in themannerintendedbymanagement.Instead,anThatarighttodefermustexistattheendofthe entityrecognizestheproceedsfromsellingsuch items,andthecostsofproducingthoseitems,inreporting period. profitorloss.Thatclassificationisunaffectedbythelikelihoodthat an entity will exercise its deferral right.Thatonlyifanembeddedderivativeinaconvertibleliabilityisitselfanequityinstrumentwould the terms of a liability not impact its classification.77'