NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C11 Provisions (continued) Recognition and measurement (continued) (ii) Onerous contracts Provision for onerous contracts on uncompleted contracts is recognised immediately in profit or loss when it is determinable. (iii) Closure costs Provision for closure costs is made in respect of the expected costs that the Group will undertake between the cessation of certain operations of the Group to the completion of their liquidation. (iv) Restoration costs Provision for restoration costs is made for dismantlement, removal or restoration costs expected to be incurred on expiry of lease agreements. Estimates and judgement: Provision for warranty The provision for warranty is based on estimates from known and expected warranty work to be performed after completion. The warranty expense incurred could be higher or lower than the provision made. Estimates and judgement: Provision for onerous contracts The Group conducts a critical review of all its long-term contracts regularly. Judgement is used to estimate the total cost to complete as the long-term contracts progress. When it is probable that the total unavoidable costs of meeting the obligations under the contract exceed the long-term contracts revenue, a provision for onerous contract is recognised immediately. C12 Deferred income Group 2024 2023 $’000 $’000 Government grants 26,029 23,576 Deferred rents 1,758 4,030 27,787 27,606 Recognise: Within 1 year 9,363 11,755 After 1 year 18,424 15,851 27,787 27,606 Government grants relate mainly to grants received to subsidise the cost of capital assets. 182 ST ENGINEERING | ANNUAL REPORT 2024
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