b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)f. Revenue from contracts with customersConsideration payable to customersRevenue from contracts with customers isConsideration payable to a customer includes recognizedwhencontrolofthegoodsorservices cashamountsthatanentitypays,orexpectsare transferred to the customer at an amounttopay,tothecustomer.TheGrouphassomethatreflectstheconsiderationtowhichtheGroup contracts for the sale of oil products that give rise expects to be entitled in exchange for those goodsto a penalty when failing to perform according orservices.TheGrouphasgenerallyconcluded totheagreeduponterms.Theconsiderationthatitistheprincipalinitsrevenuearrangements, payable to customers is accounted for as a because it typically controls the goods or servicesreductionofthetransactionpriceand,therefore,before transferring them to the customer. of revenue. If the consideration payable to a customerincludesavariableamount,theGroupSale of oil products and thermal energy estimates the transaction price. Revenue from the sale of oil products is(ii)Significantfinancingcomponentrecognizedwhenthesignificantrisksandrewardsofownershiphavebeentransferred,whichis Generally,theGroupprovidesshort-termadvancesconsidered to occur when title passes to theto its customers. Using the practical expedient in customer.Thisgenerallyoccurswhentheproduct IFRS15,theGroupdoesnotadjustthepromisedisphysicallytransferredintoavessel,pipeorother amount of consideration for the effects of a delivery mechanism. significantfinancingcomponentifitexpects,atRevenues are recorded from the sales of thermalcontractinception,thattheperiodbetweentheenergywhentheproductisdeliveredatafixed transfer of the promised good or service to the ordeterminableprice,titlehastransferred,and customer and when the customer pays for that collectability is reasonably assured. good or service will be one year or less.Salesbetweengroupcompanies,asdisclosed TheGroupalsoreceiveslong-termadvancesfromintheoperatingsegmentinformation,arebased customersforthesaleofoilproducts.However,onpricesgenerallyequivalenttocommercially the timing of the transfer of these goods or available prices. servicesisatdiscretionofthecustomer,thisisnotconsideredasasignificantfinancingcomponent.TheGroupconsiderswhetherthereareother Warranty obligationspromises in the contract that are separate performance obligations to which a portionTheGrouptypicallyprovideswarrantiesforof the transaction price needs to be allocatedguaranteeofquality,providingthecustomera(e.g.,warranties).Indeterminingthetransaction timeframeoffifteen(15)daysafterdeliverytoprice,theGroupconsiderstheeffectsofvariable raise a claim in regard to shortages and defect in consideration,theexistenceofsignificantfinancing quality/quantityofdeliveredgoods.UnderIFRScomponents,andconsiderationpayabletothe 15 this is not considered an additional good or customer (if any).service to the client and is therefore considered tobeanassurance-typewarranty.Whenmaterial(i) Variable considerationthese types of warranties are accounted for as If the consideration in a contract includes awarranty obligations and the estimated cost of variableamount,theGroupestimatestheamount satisfying them is accrued in accordance with the of consideration to which it will be entitled inrequirementsinIAS37.Refertotheaccountingexchange for transferring the goods to thepolicy on warranty provisions in section c) customer.Thevariableconsiderationisestimated Provisions.at contract inception and constrained until it is highlyprobablethatasignificantrevenuereversalintheamountofcumulativerevenuerecognizedwill not occur when the associated uncertainty withthevariableconsiderationissubsequentlyresolved. Some contracts for the sale of oil products give rise to a consideration payable to customers. 38 STAATSOLIE 2018 ANNUAL REPORT'