ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) F4 Associates and joint ventures Group 2020 2019 $’000 $’000 Unquoted shares, at fair value 20,858 23,328 Unquoted shares, at cost 357,705 355,878 Goodwill on acquisition 38 38 Share of net assets acquired 357,743 355,916 Impairment in associates (8,000) (4,000) Share of post-acquisition reserves 98,311 78,175 448,054 430,091 468,912 453,419 Represented by: Interest in associates 319,005 318,415 Interest in joint ventures 149,907 135,004 468,912 453,419 During the year, an impairment loss of $4,000,000 was recognised for an investment in associate and mainly relates to the shortfall between the carrying amount of the costs of investment and the recoverable amount of an investment in associate. The recoverable amount was determined based on the value-in-use method. In the prior year, (i) the Group sold its entire 22.8% interest in WizVision Pte. Ltd. for a cash consideration of $648,000 and a gain of disposal of $648,000 was recognised. (ii) the Group sold its entire 49% interest in Takata CPI Singapore Pte Ltd for a cash consideration of $5,338,000 and a gain on disposal of $1,035,000 was recognised. (iii) the Group received cash proceeds of $109,000 on the liquidation of Fortis Marine Solutions Pte. Ltd. and the carrying amount of $69,000 was de-recognised. Consequently, a gain on disposal of $40,000 was recognised. (iv) impairment loss of $4,000,000 mainly relates to the shortfall between the carrying amount of the costs of investment and the recoverable amount of an investment in associate. The recoverable amount was determined based on the value-in-use method. / ST ENG I NEER I NG 264