Full Annual Report 2006 - Singapore Technologies Engineering

More documents

Recommendations

Info

115 Notes to the Financial Statements 31 DECEMBER 2006 (Currency – Singapore dollars unless otherwise stated) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (d) Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the statement of profit and loss in those expense categories consistent with the function of the impaired asset. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charged is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. The Group does not reverse in a subsequent period any impairment loss recognised for goodwill. (e) Investments and other financial assets Financial assets within the scope of FRS 39 are classified as either financial assets at fair value through profit or loss, loans and receivables, or available-for-sale financial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year-end. All regular way purchases and sales of financial assets are recognised on the trade date i.e., the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace. (i) Financial assets at fair value through profit or loss Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on investments held for trading are recognised in income. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
THE WINNING SPIRIT ST Engineering AR 2006 116 Notes to the Financial Statements 31 DECEMBER 2006 (Currency – Singapore dollars unless otherwise stated) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (e) Investments and other financial assets (continued) (iii) Available-for-sale financial assets Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified in any of the two preceding categories. After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in the statement of profit and loss. The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market prices at the close of business on the balance sheet date. For investments where there is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length market transactions; reference to the current market value of another instrument, which is substantially the same; discounted cash flow analysis and option pricing models. For investments where there is no active market and where fair value cannot be reliably measured, they are measured at cost. (f) Amounts under fund management Amounts under fund management are classified as available-for-sale investments and the recognition criteria is as stated in Note 2(e)(iii) above, except for the impairment assessment. Provision for impairment in value is made up to the non-guaranteed returns of the principal sums by the fund managers when the market value of the fund is below cost. (g) Property, plant and equipment and depreciation Property, plant and equipment are stated at cost or valuation, net of depreciation and any impairment loss. Depreciation is provided on the straight-line basis so as to write off the cost of these assets over their estimated useful lives as follows: Freehold land and buildings – 15 to 30 years Leasehold land and buildings – Over the period of the lease of between 5 to 60 years Buildings on rented properties – 30 years Improvements to premises – 3 to 30 years Wharves and slipways – 10 to 16 years Syncrolift and floating docks – 5 to 10 years Boats and barges – 5 years Plant and machinery – 2 to 20 years Production tools and equipment – 3 to 10 years Furniture, fittings, office equipment and computers – 1 to 5 years Transportation equipment and vehicles – 4 to 5 years Aircraft and aircraft engines – 5 to 15 years Construction-in-progress is not depreciated until each stage of development is completed and becomes operational. Assets purchased specifically for projects are depreciated over the useful life of the class of assets or the duration of the project, whichever is shorter. The residual value, useful life and depreciation method are reviewed at each financial year-end to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the statement of profit and loss in the year the asset is derecognised.
Page 1 and 2:
THE WINNING SPIRIT ANNUAL REPORT 20
Page 3 and 4:
1 The winning spirit entails more t
Page 5 and 6:
11 Peter SEAH Lim Huat Chairman (le
Page 7 and 8:
13 In 2007, we will continue to gro
Page 10 and 11:
THE WINNING SPIRIT ST Engineering A
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
33 Corporate Governance Board’s C
Page 28 and 29:
35 Corporate Governance BOARD COMPO
Page 30 and 31:
37 Corporate Governance The ERCC me
Page 32 and 33:
39 Corporate Governance Remuneratio
Page 34 and 35:
41 Corporate Governance Internal Co
Page 36 and 37:
43 Corporate Governance COMPLIANCE
Page 38 and 39:
45 Environment, Health and Safety A
Page 40 and 41:
47 Investor Relations ST ENGINEERIN
Page 42 and 43:
49 Share Price Performance ST ENGIN
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
57 Operating Financial Review GROUP
Page 50 and 51: 59 Operating Financial Review PERFO
Page 52 and 53: 61 Operating Financial Review Capit
Page 54 and 55: LAND SYSTEMS SECTOR MARINE SECTOR C
Page 56 and 57: 67 Aerospace FLYING HIGH WITH TOTAL
Page 58 and 59: 69 Aerospace Full Year Performance
Page 60 and 61: THE WINNING SPIRIT ST Engineering A
Page 62 and 63: 75 Land Systems BREAKING NEW GROUND
Page 64 and 65: 77 Land Systems Major Acquisitions
Page 76 and 77: 91 Directors’ Report AS AT 31 DEC
Page 86 and 87: 101 Directors’ Report AS AT 31 DE
Page 88 and 89: 103 Statement by Directors We, Pete
Page 90 and 91: 105 Balance Sheets AS AT 31 DECEMBE
Page 92 and 93: 107 Statements of Changes in Equity
Page 94 and 95: 109 Consolidated Statement of Cash
Page 96 and 97: 111 Consolidated Statement of Cash
Page 98 and 99: 113 Notes to the Financial Statemen
Page 150 and 151:
165 Notes to the Financial Statemen
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
197 SGX Listing Manual Requirements
Page 184 and 185:
199 Shareholding Statistics AS AT 5
Page 186 and 187:
201 SECTORAL FINANCIAL REVIEW - AER
Page 188 and 189:
203 SECTORAL FINANCIAL REVIEW - AER
Page 190 and 191:
205 SECTORAL FINANCIAL REVIEW - ELE
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
211 SECTORAL FINANCIAL REVIEW - LAN
Page 198 and 199:
213 SECTORAL FINANCIAL REVIEW - LAN
Page 200 and 201:
215 SECTORAL FINANCIAL REVIEW - MAR
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
221 Group Structure - Singapore Tec
Page 208 and 209:
223 Group Structure - Singapore Tec
Page 210 and 211:
225 CORPORATE INFORMATION BOARD OF
Page 212 and 213:
SINGAPORE TECHNOLOGIES ENGINEERING
Page 214:
2 fold this dotted line > Postage w
show all

Full Annual Report 2006 - Singapore Technologies Engineering

Create successful ePaper yourself

Delete template?

Save as template?