b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)(ii) Foreign subsidiaries UnrecognizeddeferredtaxassetsarereassessedAsatthereportingdate,theassetsandliabilities ateachreportingdateandarerecognizedtotheof these subsidiaries are translated into theextent that it has become probable that future presentation currency of the Group at the ratetaxableprofitswillallowthedeferredtaxassettoofexchangerulingatthereportingdateand, be recovered.theirstatementsofprofitorlossaretranslated Deferred tax assets and liabilities are measured at the weighted average exchange rates for theat the tax rates that are expected to apply in the year.Non-monetaryitemsthataremeasuredat yearwhentheassetisrealizedortheliabilityishistorical cost in foreign currency are translatedsettled,basedontaxrates(andtaxlaws)thatusing the exchange rates as at the date of thehave been enacted or substantively enacted at initialtransaction.Theexchangedifferences the reporting date. Deferred tax relating to items arising on the translation are taken directly to otherrecognizedoutsideprofitorlossisrecognizedcomprehensive income. On disposal of a foreignoutsideprofitorloss.entity,thedeferredcumulativeamountrecognizedinequityrelatingtothatparticularforeignentityis Deferredtaxassetsandliabilitiesareoffset,recognizedintheconsolidatedstatementofprofit only if a legally enforceable right exists to set off or loss. current income tax assets against current income taxliabilities,andthedeferredtaxesrelatetothei.Taxes same taxation authority.Current income tax assets and liabilities forSales taxthe current period are measured at the amount expected to be recovered from or paid to theRevenues,expensesandassetsarerecognizedtaxationauthorities.Thetaxratesandtaxlaws netoftheamountofsalestaxexcept:used to compute the amount are those that areWherethesalestaxincurredonapurchaseofenacted,orsubstantivelyenactedatthereporting date in the countries where the Group operatesassets or services is not recoverable from the and generates taxable income. Current incometaxationauthority,inwhichcase,thesalestaxtaxrelatingtoitemsrecognizeddirectlyinequity isrecognizedaspartofthecostofacquisitionisrecognizedinequityandnotinthestatementof oftheassetoraspartoftheexpenseitem,asprofitorloss.Managementperiodicallyevaluates applicablepositions taken in the tax returns with respect to Receivables and or payables are stated with the situations in which applicable tax regulations are subjecttointerpretationandestablishesprovisions amount of sales tax includedwhere appropriate. Thenetamountofsalestaxrecoverablefrom,orDeferred tax payableto,thetaxationauthorityisincludedaspart of receivables or payables in the consolidated Deferred tax is provided using the liability methodstatementoffinancialposition.on temporary differences between the tax bases ofj. Property, plant and equipment assets and liabilities and their carrying amounts for financialreportingpurposesatthereportingdate. Constructioninprogress,plantandequipmentareDeferredtaxliabilitiesarerecognizedforall statedatcost,netofaccumulateddepreciationtaxabletemporarydifferencessubjecttocertain and/oraccumulatedimpairmentlosses,ifany.specificexceptions. Such cost includes the cost of replacing parts of theproperty,plantandequipmentandborrowingDeferredtaxassetsarerecognizedforall costsforlong-termconstructionprojectsifthedeductibletemporarydifferencesandcarry- recognitioncriteriaaremet.Whensignificantpartsforwardofunusedtaxlosses,totheextentthatitis ofproperty,plantandequipmentarerequiredtoprobablethatfuturetaxableprofitwillbeavailable bereplacedatintervals,theGrouprecognizesagainst which the temporary differences and carrysuchpartsasindividualassetswithspecificforwardofunusedtaxlossescanbeutilized. useful lives and depreciates them accordingly. Likewise,whenamajorinspectionisperformed,Thecarryingamountofdeferredtaxassetsis itscostisrecognizedinthecarryingamountreviewed at each reporting date and reducedoftheplantandequipmentasareplacementto the extent that it is no longer probable thatiftherecognitioncriteriaaresatisfied.Allothersufficienttaxableprofitwillbeavailabletoallow repairandmaintenancecostsarerecognizedinallorpartofthedeferredtaxassettobeutilized. theconsolidatedstatementofprofitorlossas40 STAATSOLIE 2018 ANNUAL REPORT'