ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) B6 Taxation (continued) (ii) Deferred tax assets and liabilities (a) Recognised deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: Assets Liabilities Group 2020 2019 2020 2019 $’000 $’000 $’000 $’000 Property, plant and equipment (1,741) (2,275) 129,803 95,790 Intangible assets (6,720) (13,136) 212,667 190,016 Allowance for doubtful debts (1,702) (1,987) – – Allowance for inventory obsolescence (27,751) (26,869) – – Provisions and accruals (173,179) (127,913) 2,701 575 Lease liabilities (3,089) (4,461) 4,201 3,710 Unabsorbed capital allowances and unutilised tax losses (118,445) (45,190) 22,821 8,377 Fair value of derivative financial instruments designated as cash flow hedges (6,946) (10,791) 11,384 838 Fair value of defined benefit plans (49,390) (27,013) – – Other items (8,621) (13,777) 31,140 37,243 Deferred tax (assets)/liabilities (397,584) (273,412) 414,717 336,549 Set off of tax 248,197 161,817 (248,197) (161,817) Net deferred tax (assets)/liabilities (149,387) (111,595) 166,520 174,732 The Group’s lease payments are deductible upon payment for tax purposes. In accounting for the deferred tax relating to the lease, the Group considers the asset and liability collectively and accounts for the deferred taxation on a net basis. / ST ENG I NEER I NG 172