b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (Continued)Environmental risk liability Thelifeofeachitem,whichisassessedatleastLiabilitiesforenvironmentalcostsarerecognized annually,relatestobothitsphysicallifelimitationswhenaclean-upisprobable,andtheassociated and present assessments of economically costscanbereliablyestimated.Generally,the recoverablereservesofthefieldatwhichthetimingofrecognitionoftheseprovisionscoincides assetislocated.Thesecalculationsrequirethewiththecommitmenttoaformalplanofactionor,if useofestimatesandassumptions,includingtheearlier,ondivestmentoronclosureofinactivesites. amountofrecoverablereservesandestimatesTheamountrecognizedisthebestestimateofthe offuturecapitalexpenditure.Thecalculationofexpenditurerequired.Iftheeffectofthetimevalue theUOPrateofdepreciation/amortizationwillofmoneyismaterial,theamountrecognizedisthe beimpactedtotheextentthatactualproductionpresentvalueoftheestimatedfutureexpenditure. in the future is different from current forecast productionbasedontotalprovedreserves,orContingent liabilities future capital expenditure estimates change. ChangestoprovereservescouldariseduetoContingentliabilitiesmayarisefromtheordinary changes in the factors or assumptions used in courseofbusinessinrelationtoclaimsagainst estimatingreserves,including:theGroup,includinglegal,contractualandother Theeffectonprovedreservesofdifferencesclaims.Bytheirnature,contingencieswillbe betweenactualcommoditypricesandcommodityresolvedonlywhenoneormoreuncertainfuture price assumptions.eventsoccurorfailtooccur.Theassessmentoftheexistence,andpotentialquantum,of Unforeseen operational issues.contingenciesinherentlyinvolvestheexerciseofsignificantjudgmentandtheuseofestimates Defined benefit plans (pension benefits)regardingtheoutcomeoffutureevents.ThecostofdefinedbenefitpensionplansandotherRecoverability of assetspost-employmentmedicalbenefitsandthepresentTheGroupassesseseachassetorcash valueofthepensionobligationaredeterminedgeneratingunit(CGU)(excludinggoodwill,which usingactuarialvaluations.Anactuarialvaluationisassessedannuallyregardlessofindicators) involvesmakingvariousassumptionswhichmayin each reporting period to determine whetherdifferfromactualdevelopmentsinthefuture.Theseanyindicationofimpairmentexists.Wherean includethedeterminationofthediscountrate,indicatorofimpairmentexists,aformalestimate futuresalaryincreases,mortalityratesandfutureoftherecoverableamountismade,whichis pension increases. Due to the complexity of the consideredtobethehigherofthefairvalue valuation,theunderlyingassumptionsanditslong-lesscostofdisposal(FVLCD)andvalue-in- termnature,adefinedbenefitobligationishighlyuse(VIU).Theassessmentsrequiretheuseof sensitivetochangesintheseassumptions.Allestimates and assumptions such as long-term oilassumptionsarereviewedateachreportingdate.prices(consideringcurrentandhistoricalprices, Theparametermostsubjecttochangeisthepricetrendsandrelatedfactors),discountrates, discount rate. In determining the appropriate operatingcosts,futurecapitalrequirements, discountrate,managementconsiderstheinterestdecommissioningcosts,explorationpotential, ratesofgovernmentbondsincurrenciesconsistentreservesandoperatingperformance(which withthecurrenciesofthepost-employmentbenefitincludesproductionandsalesvolumes).These obligationwithatleastanAAratingorabove,estimatesandassumptionsaresubjecttorisk assetbyaninternationallyacknowledgedratinganduncertainty.Therefore,thereisapossibility agency,andextrapolatedasneededalongthethat changes in circumstances will impact theseyieldcurvetocorrespondwiththeexpectedtermprojections,whichmayimpacttherecoverable ofthedefinedbenefitobligation.Theunderlyingamountofassetsand/orCGUs. bondsarefurtherreviewedforquality.ThosehavingexcessivecreditspreadsareremovedfromUnits of production (UOP) depreciation theanalysisofbondsonwhichthediscountrateisof oil assetsbased,onthebasisthattheydonotrepresenthighOilpropertiesaredepreciatedusingUOPmethod qualitybonds.overtotalproveddevelopedandundevelopedhydrocarbonreserves.Thisresultsinadepreciation/amortizationchargeproportionalto the depletion of the anticipated remaining productionfromthefield.93'