NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) B2 Revenue (continued) Key estimates and judgement: Revenue recognition Judgement is applied in determining: • whether performance obligations are distinct. Requires an assessment of whether the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and if the promise is separately identifiable from other promises in the contract. • the transaction price for contracts with variable consideration (e.g. bonus, liquidated damages, penalties, etc). Requires an evaluation of potential risk and factors which may affect completion or delivery of the contract, in accordance with contract obligations. • estimated cost to complete. For revenue recognised over time, the percentage of completion is assessed by reference to the contract costs incurred till date in proportion to the total estimated costs for each contract. In making the estimates, management relies on the expertise of its project team and past experience of completed projects. The estimated total costs are reviewed regularly and adjusted where necessary, with the corresponding effect of the change being recognised prospectively from the date of change. B3 Profit from operations Profit from operations is arrived at after charging the following items (excluding those disclosed in the other notes to the financial statements): Group 2024 2023 $’000 $’000 After charging/(crediting) Auditors’ remuneration – auditors of the Company 3,134 2,751 – other auditors# 2,261 2,371 Non-audit fees – auditors of the Company 83 302 – other auditors# 43 432 Fees paid to a firm of which a director is a member 295 882 Research, design and development expenses* 189,766 187,894 Allowance for inventory obsolescence 42,131 28,134 Short-term lease expense 18,587 16,325 Low-value assets lease expense 7,484 2,136 Property, plant and equipment written off 2,645 2,118 Intangible assets written off 4,603 – Loss on disposal of investment – 24,132 Fair value changes of associates 1,869 5,398 # Includes the network of member firms of PricewaterhouseCoopers International Limited (PwCIL) * Amount before deducting government grants of $13,900,000 (2023: $18,917,000) 148 ST ENGINEERING | ANNUAL REPORT 2024
RkJQdWJsaXNoZXIy ODIwNTc=