ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) B4 Other income, net Group Note 2020 2019 $’000 $’000 Other income Rental income 4,181 4,084 Gain on disposal of property, plant and equipment 16 9,029 Gain on disposal of subsidiaries – 571 Gain on disposal of associates – 1,723 Others 10,229 9,896 14,426 25,303 Other expenses Loss on disposal of subsidiaries (43) (1,496) Impairment of an associate F4 (4,000) (4,000) Fair value changes of investment in associates (5,285) (1,978) (9,328) (7,474) Other income, net, recognised in profit or loss 5,098 17,829 Recognition and measurement (i) Government grants are recognised as a receivable at fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Grant relating to expense is deducted in reporting the related expense. Grants relating to depreciable assets are recognised in profit or loss over the estimated useful lives of the relevant assets. (ii) Rental income from leasing facilities is accounted on a straight-line basis over the lease term. (iii) The gain or loss on disposal of an item of property, plant and equipment, subsidiary, associate or joint venture is determined by comparing the proceeds from disposal with the carrying amount of the disposed item. 16 9 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT