b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Continued)operating expenditure work program and budget forTheGroupmakesequipmentavailabletothethejointarrangement,andtheapprovalofchosen customers as part of contracts with customers serviceprovidersforanymajorcapitalexpenditure whenprovidingoilproducts.TheGroupdeterminedasrequiredbythejointoperatingagreements thatthesaleofoilproductsandequipmentrentalapplicabletotheentitysjointarrangements.The arenotcapableofbeingdistinct.Thesaleofconsiderationsmadeindeterminingjointcontrol oilproductsandequipmentrentalarehighlyare similar to those necessary to determineinterrelated,becausetheGroupwouldnotbeablecontroloversubsidiaries,assetoutinNote to sell the oil products if the customer declined 2.3b.Judgmentisalsorequiredtoclassifyajoint equipmentrental.arrangement.Classifyingthearrangementrequiresthe Group to assess their rights and obligations Determining the timing of satisfaction of sale of oilarisingfromthearrangement.Specifically,the productsGroupconsiders: TheGroupdeterminedthatforcontractsthatThestructureofthejointarrangementwhetherit areconsideredconsignmentarrangements,is structured through a separate vehicle the obligation is to transfer the product to the consignee.TheGroupwillnotrelinquishcontrolWhenthearrangementisstructuredthrougha of the consigned product until the product is sold separatevehicle,theGroupalsoconsidersthe totheend-customer.Consigneesdonothaveanyrightsandobligationsarisingfrom: obligationtopayfortheproduct,otherthantopay Thelegalformoftheseparatevehicle theGrouptheagreed-uponportionofthesalepriceonce the consignee sells the product to a thirdT hetermsofthecontractualarrangement party.Asaresult,forconsignmentarrangements,revenueisrecognizedwhentheproductsare O therfactsandcircumstances,consideredon delivered to the end customer and the performance a case by case basis obligationhasbeensatisfied.ConsiderationofsignificantfinancingcomponentThisassessmentoftenrequiressignificant judgment.Adifferentconclusionaboutbothjoint in a contract controlandwhetherthearrangementisajoint Generally,theGroupprovidesshort-termoperationorajointventure,maymateriallyimpact advances to its customers. Using the practical the accounting treatment. expedientinIFRS15,theGroupdoesnotadjustRevenue from contracts with customers the promised amount of consideration for the effectsofasignificantfinancingcomponentifTheGroupappliedthefollowingjudgements itexpects,atcontractinception,thattheperiodthatsignificantlyaffectthedeterminationofthe between the transfer of the promised good or amount and timing of revenue from contracts withservice to the customer and when the customer customers: pays for that good or service will be one year or less.Identifying performance obligations in a bundledTheGroupalsoreceiveslong-termadvancesfromsale of oil products and transportation services customersforthesaleofoilproducts.However,Insomecases,theGroupprovidestransportation seen the timing of the transfer of these goods or services as part of contracts with customers whenservicesisatdiscretionofthecustomer,thisisnotprovidingoilproducts.TheGroupdeterminedthat consideredasasignificantfinancingcomponent.transportation services are not considered a distinct Determining method to estimate variable performance obligation since this service to the clientisnotconsideredtobeseparatelyidentifiable considerationfromthesaleofoilproductstothecustomer,these Some contracts for the sale of oil products give are considered highly interrelated.rise to a consideration payable to customers. In Identifying performance obligations in a bundledcase the Group is not able to supply the customer saleofoilproductsandequipmentrental with oil products in the timeframe as agreed in the contractandbeforeitsstockoutdate,theGroupisliable for the difference between the price of a third party for concerning oil products and the price as agreedinthecontract.However,sincetheGrouphas no history of failing to deliver on contractual obligations,penaltiesarenotconsideredupondetermination of the transaction price.50 STAATSOLIE 2018 ANNUAL REPORT'