NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C11 Provisions (continued) Recognition and measurement (continued) (iii) Closure costs Provision for closure costs is made in respect of the expected costs that the Group will undertake between the cessation of certain operations of the Group to the completion of their liquidation. (iv) Restoration costs Provision for restoration costs is made for dismantlement, removal or restoration costs expected to be incurred on expiry of lease agreements. Estimates and judgement: Provision for warranty The provision for warranty is based on estimates from known and expected warranty work to be performed after completion. The warranty expense incurred could be higher or lower than the provision made. Estimates and judgement: Provision for onerous contracts The Group conducts a critical review of all its long-term contracts regularly. Allowance is made where necessary to account for onerous contracts and judgement is used to estimate the total cost to complete. C12 Deferred income Group 2022 $’000 2021 $’000 Government grants 25,507 81,209 Deferred rents 5,670 338 31,177 81,547 Recognise: Within 1 year 13,589 7,665 After 1 year 17,588 73,882 31,177 81,547 Government grants relate mainly to grants received to subsidise the cost of capital assets. In the prior year, the government grant included deferred grant recognised under the Jobs Support Scheme (JSS) and other government support for employee related expenses. The JSS is a temporary scheme introduced in the Singapore Budget 2020 to help enterprises to retain local employees. Under the JSS, employers will receive cash grants in relation to the gross monthly wages of eligible employees. 186 ST ENGINEERING ANNUAL REPORT 2022
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