b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (Continued)price,theGroupconsiderstheeffectsofvariable (ii) Significant financing component consideration,theexistenceofsignificantfinancingcomponents,andconsiderationpayabletothe Generally,theGroupprovidesshort-termadvancescustomer(ifany). to its customers. Using the practical expedient in IFRS15,theGroupdoesnotadjustthepromisedSale of thermal & hydro energy generationamount of consideration for the effects of a productscomprisesofrevenueearnedfromthe significantfinancingcomponentifitexpects,atprovisionofelectricityandsteamtoStaatsolie contractinception,thattheperiodbetweentheRefineryOperationsandelectricitytothe transferofthepromisedgoodorservicetotheGovernmentofSuriname(GoS)whoistheonly customer and when the customer pays for that third-partycustomer.Revenuesaregenerally goodorservicewillbeoneyearorless.recognizedwhenSPCSfulfillsitsperformanceobligationbytransferringtheaffirmedgoods TheGroupalsoreceiveslong-termadvancesfrom(electricityandsteam)tothecustomerandonce customersforthesaleofoilproducts.However,product has passed the meters the customersif the timing of the transfer of these goods or obtaincontroloftheproduct. servicesisatdiscretionofthecustomer,thisisnotconsideredasasignificantfinancingcomponent.Goldrevenueisbeingrecognizedwhentheperformanceobligationoftransferringgold (iii) Warranty obligationsinventorytothecustomerissatisfied,which TheGrouptypicallyprovideswarrantiesforgenerallyoccursupontransferofgoldbullion guaranteeofquality,providingthecustomeracreditstothecustomer,asthisisthepointat timeframeoffifteen(15)daysafterdeliverytowhichthecustomerobtainstheabilitytodirectthe raise a claim in regard to shortages and defect in useandobtainsubstantiallyalloftheremaining quality/quantityofdeliveredgoods.UnderIFRSbenefitsofownershipoftheasset.Thiscan 15 this is not considered an additional good or occurwhengolddorisdeliveredtothebuyers servicetotheclientandisthereforeconsideredtorefinery,upondeliveryofthegolddor,orupon beanassurance-typewarranty.Whenmaterial,beingloadedtoairtransportandflightdeparturein these types of warranties are accounted for as Suriname. warrantyobligationsandtheestimatedcostof(i) Variable considerationsatisfying them is accrued in accordance with the requirementsinIAS37Provisions,ContingentIf the consideration in a contract includes aLiabilitiesandContingentAssets.Refertothevariableamount,theGroupestimatestheamount accountingpolicyonwarrantyprovisionsinsectionofconsiderationtowhichitwillbeentitledin t.Provisions.exchange for transferring the goods to the customer.Thevariableconsiderationisestimated (iv) Transportation services at contract inception and constrained until it isInsomecases,theGroupprovidestransportationhighlyprobablethatasignificantrevenuereversal servicesaspartofcontractswithcustomerswhenintheamountofcumulativerevenuerecognized providingoilproducts.Transportationservicesarewill not occur when the associated uncertaintynotconsideredadistinctperformanceobligationwiththevariableconsiderationissubsequently sincethisservicetotheclientisnotconsideredresolved.Somecontractsforthesaleofoil tobeseparatelyidentifiablefromthesaleofoilproductsgiverisetoaconsiderationpayableto productstothecustomer,theseareconsideredcustomers.highly interrelated. Consideration payable to customers (v) Equipment rental Considerationpayabletoacustomerincludes TheGroupmakesequipmentavailabletothecashamountsthatanentitypays,orexpects customers as part of contracts with customers topay,tothecustomer.TheGrouphassome whenprovidingoilproducts.Equipmentrentaliscontractsforthesaleofoilproductsthatgiverise notconsideredaseparateperformanceobligationto a penalty when failing to perform according tosincethisservicetotheclientisnotconsideredtheagreeduponterms.Theconsiderationpayable tobeseparatelyidentifiablefromthesaleofoilto customers is accounted for as a reduction of theproductstothecustomer,theseareconsideredtransactionpriceand,therefore,ofrevenue. highly interrelated. 80 STAATSOLIE 2021 ANNUAL REPORT'