b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)SECTION 2. TherelevantactivitiesarethosewhichsignificantlyBASIS OF PREPARATION AND OTHERaffectthesubsidiarysreturns.TheabilitytoSIGNIFICANT ACCOUNTING POLICIES approve the operating and capital budget of a subsidiary and the ability to appoint key management personnel are decisions that 2.1 BASIS OF PREPARATIONdemonstrate that the Group has the existing rights to direct the relevant activities of a subsidiary.TheconsolidatedfinancialstatementsofStaatsolie TheGroupreassesseswhetherornotitcontrolsas a group have been prepared in accordancean investee if facts and circumstances indicate with International Financial Reporting Standardsthat there are changes to one or more of the three (IFRS) as issued by the International Accountingelements of control. Consolidation of a subsidiary Standards Board (IASB). begins when the Group obtains control over the Theconsolidatedfinancialstatementshavebeen subsidiary and ceases when the Group loses preparedonahistoricalcostbasis,exceptfor controlofthesubsidiary.Assets,liabilities,incomefinancialinstrumentsthathavebeenmeasured andexpensesofasubsidiaryacquiredordisposedatfairvalue.Theconsolidatedstatementsare of during the year are included in the consolidated presentedinUSdollars,andallvaluesare financialstatementsfromthedatetheGroupgainsroundedtothenearestthousand(US$1000), control until the date the Group ceases to control except when otherwise indicated. thesubsidiary.WheretheGroupsinterestislessthan100percent,theinterestattributabletooutsideshareholdersisreflectedinnon-controlling2.2 BASIS OF CONSOLIDATION interest (NCI). ProfitorlossandeachcomponentofotherTheconsolidatedfinancialstatementscomprisethe comprehensive income (OCI) are attributed to the financialstatementsofStaatsolieanditscontrolled equityholdersoftheparentoftheGroupandtosubsidiariesasatDecember31,2018and2017. theNCI,evenifthisresultsintheNCIhavingaControlisachievedwhentheGroupisexposed,or deficitbalance.Whennecessary,adjustmentsarehasrights,tovariablereturnsfromitsinvolvement madetothefinancialstatementsofsubsidiarieswith the investee and has the ability to affectto bring their accounting policies into line with the those returns through its power over the investee.Groupsaccountingpolicies.Specifically,theGroupcontrolsaninvesteeif,and Allintragroupassetsandliabilities,equity,income,onlyif,theGrouphasallofthefollowing: expensesandcashflowsrelatingtotransactionsbetween members of the Group are eliminated inPower over the investee (i.e. existing rights thatfull on consolidation. give it the current ability to direct the relevantAchangeintheownershipinterestofasubsidiary,activities of the investee); withoutalossofcontrol,isaccountedforasan Exposure or rights to variable returns from itsequitytransaction. involvement with the investee; IftheGrouplosescontroloverasubsidiary,Theabilitytouseitspowerovertheinvesteeto itderecognizestherelatedassets(includingaffect its returns. goodwill),liabilities,non-controllinginterestandothercomponentsofequitywhileanyresultantGenerally,thereisapresumptionthatamajority gainorlossisrecognizedinprofitorloss.Anyofvotingrightsresultincontrol.Tosupportthis investmentretainedisrecognizedatfairvalue.presumption and when the Group has less thanamajorityofthevotingorsimilarrightsofaninvestee,itconsidersallrelevantfactsandcircumstances in assessing whether it has power overaninvestee,including:Thecontractualarrangement(s)withtheothervote holders of the investee;Rights arising from other contractual arrangements;TheGroupsvotingrightsandpotentialvotingrights.35'