Presentation Slides - Singapore Technologies Engineering

Change in DepreciationPolicy• FRS 16 requires the Group to review the estimated useful lives ofproperty, plant and equipment (PPE) periodically such that it bestreflects the pattern in which the assets’ future economic benefits areexpected to be consumed• The Group engaged independent consultants to perform industry andbenchmarking study of the depreciation rates of its PPE• The industry and benchmarking study considered the industrypractices of the four sectors and studied the economic useful lives ofits PPE• Based on the results obtained, the Group revised the estimated usefullives of the PPE to align them to industry practices with effect from thefinancial year ended 2010Engineering Our Future7