b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)Goodwill is tested for impairment annually as atTheexpenserelatingtoaprovisionispresentedinDecember 31 and when circumstances indicate thattheconsolidatedstatementofprofitorlossnetofthe carrying value may be impaired. Impairmentany reimbursement. If the effect of the time value is determined for goodwill by assessing theofmoneyismaterial,provisionsarediscountedrecoverable amount of each CGU to which theusingacurrentpre-taxratethatreflects,whengoodwillrelates.Wheretherecoverableamount appropriate,therisksspecifictotheliability.Whenofthecash-generatingunitislessthantheir discountingisused,theincreaseintheprovisioncarryingamount,animpairmentlossisrecognized. duetothepassageoftimeisrecognizedasaImpairment losses relating to goodwill cannot befinancecostintheconsolidatedstatementofprofitreversed in future periods. or loss.q. Cash and shortterm depositsWarranty provisionsCashandshort-termdepositsintheconsolidated TheGrouptypicallyprovideswarrantiesforstatementoffinancialpositioncomprisecashat guaranteeofquality,providingthecustomerabanksandonhandandshort-termdepositswith timeframeoffifteen(15)daysafterdeliverytoamaturityofthreemonthsorless,whichare raise a claim in regard to shortages and defect subjecttoaninsignificantriskofchangesinvalue. inquality/quantityofdeliveredgoods.ProvisionsFor the purpose of the consolidated statementrelatedtotheseassurance-typewarrantiesarecashflows,cashandcashequivalentsconsistof recognizedwhentheproductissold,ortheservicecashandshort-termdepositsasdefinedabove, is provided to the customer. Initial recognition is net of outstanding bank overdrafts as they arebasedonhistoricalexperience.TheinitialestimateconsideredanintegralpartoftheGroupscash of warranty related costs is revised annually. management. Decommissioning liabilityRestricted CashTheGrouprecognizesadecommissioningliabilityRestrictedcashisrequiredforfinancingpurposes where it has a present legal or constructive asthishasbeentherequirementofStaatsolies obligationasaresultofpastevents,anditisfinanciers.Therestrictedaccountsareusedfor probablethatanoutflowofresourceswillbeinternational collections from our internationalrequiredtosettletheobligation,andareliablecustomerstodeposittheirpayments.The estimate of the amount of obligation can be made.accountscontainathreemonthsworthofdebtservice and are funded monthly. Every threeTheobligationgenerallyariseswhentheassetismonthsinterestandprincipal,ifany,ispaidout. installed,ortheground/environmentisdisturbedAfterthenecessaryfundinghastakenplace, atthefieldlocation.WhentheliabilityisinitiallyStaatsolie can obtain the remaining cash for itsrecognized,thepresentvalueoftheestimatedoperations. costsiscapitalizedbyincreasingthecarryingamount of the related oil assets to the extent that r.Cash dividenditwasincurredbythedevelopment/constructionTheGrouprecognizesaliabilitytomakecash ofthefield.Anydecommissioningobligationsdistributionstoownersofequitywhenthe that arise through the production of inventory are distributionisauthorized,andthedistribution expensedwhentheinventoryitemisrecognizedinis no longer at the discretion of the Group. Acost of goods sold. Additional disturbances which correspondingamountisrecognizeddirectlyin ariseduetofurtherdevelopment/constructionequity. attheoilandgaspropertyarerecognizedasadditions or charges to the corresponding assets s. Provisionsand decommissioning liability when they occur. Costs related to restoration of site damage General (subsequenttostartofcommercialproduction)thatis created on an ongoing basis during production ProvisionsarerecognizedwhentheGrouphas are provided for at their net present values a present obligation (legal or constructive) as aandrecognizedinprofitorlossasproductionresultofapastevent,itisprobablethatanoutflow continues.ofresourcesembodyingeconomicbenefitswill Changes in the estimated timing or cost of berequiredtosettletheobligationandareliable decommissioning are dealt with prospectively by estimate can be made of the amount of therecordinganadjustmenttotheprovisionandaobligation.correspondingadjustmenttooilandgasproperties.Anyreductioninthedecommissioningliabilityand,48 STAATSOLIE 2018 ANNUAL REPORT'