ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) E7 Treasury shares (continued) Recognition and measurement When ordinary shares are reacquired by the Company, the consideration paid is recognised as a deduction from equity. Reacquired shares are classified as treasury shares. When treasury shares are sold, or re-issued subsequently, the cost of treasury shares is reversed from treasury shares account and the realised gain or loss on transaction is presented as a change in equity of the Company. No gain or loss is recognised in profit or loss. Treasury shares have no voting rights and no dividends are allocated to them. E8 Capital reserves Included in capital reserve are: (a) an amount of $115,948,000 (2019: $115,948,000) relating to share premium of the respective pooled enterprises, namely ST Engineering Aerospace Ltd., ST Engineering Electronics Ltd., ST Engineering Land Systems Ltd. and ST Engineering Marine Ltd. classified as capital reserve upon the pooling of interests during the year ended 31 December 1997; and (b) an amount of $8,914,000 (2019: $3,385,000) relating to realised loss (2019: realised loss) on re-issuance of treasury shares under share-based payment arrangements as at 31 December 2020. Capital reserves are non-distributable. / ST ENG I NEER I NG 252