ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C1 Property, plant and equipment (continued) Impairment The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indications exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash generating unit exceeds its estimated recoverable amount. Estimate and judgement: Depreciation charge Management estimates the useful lives based on factors such as changes in the expected level of usage and technological developments. These are reassessed at each reporting date, and adjusted prospectively, where appropriate. C2 Right-of-use assets The Group leases many assets including land, vehicles, machinery and IT equipment. Information about leases for which the Group is a lessee is presented below. Group Leasehold land Wharves, floating docks and boats Plant and machinery Production tools and equipment Furniture, fittings, office equipment and others* Total $’000 $’000 $’000 $’000 $’000 $’000 At 1 January 2020 469,596 595 917 274 12,593 483,975 Additions 52,584 1,302 813 504 5,806 61,009 Modifications of lease 67,161 – – (57) 100 67,204 Lease termination (32) – – – (46) (78) Depreciation charge/ impairment losses (65,714) (649) (428) (298) (7,258) (74,347) Translation difference 800 – (2) 6 242 1,046 At 31 December 2020 524,395 1,248 1,300 429 11,437 538,809 At 1 January 2019 418,865 1,243 1,242 221 9,949 431,520 Additions 83,924 – 69 220 6,415 90,628 Acquisition of subsidiaries 23,349 – – – 2,872 26,221 Deconsolidation/ disposal of subsidiaries (937) – – – – (937) Modifications of lease (2,122) – – 23 (1,273) (3,372) Lease termination (1,243) – – – (406) (1,649) Depreciation (49,465) (648) (391) (185) (4,875) (55,564) Translation difference (2,775) – (3) (5) (89) (2,872) At 31 December 2019 469,596 595 917 274 12,593 483,975 * Others comprise transportation equipment, vehicles and satellites 18 5 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT