notes to the financial statements - Singapore Technologies ...

192 SIMPLY SMARTERNOTES TO THE FINANCIAL STATEMENTS31 December 2011(Currency - Singapore dollars unless otherwise stated)32. Deferred incomeGroup2011 2010$’000 $’000Government grants 12,202 6,676Deferred rents 14,493 6,73526,695 13,411Government grants relate mainly to grants received:(a)(b)for subsidising the costs incurred in the acquisitions of equipment for new product development and production activities in the People’sRepublic of China (“PRC”); andto share the cost for purchase of plant and machinery and yard facility upgrades in the US operation.33. Deferred tax liabilitiesGroupCompany2011 2010 2011 2010$’000 $’000 $’000 $’000At beginning of the year 58,216 58,355 426 205Recognised in profit or loss 16,208 (5,569) 329 221Effect of reduction in tax rate 9 13 – –Translation difference 631 (3,820) – –Utilisation of tax losses 9,024 10,609 – –Acquisition of subsidiaries in current year – 19 – –Disposal of subsidiaries in current year – (2) – –Changes in fair value of derivative financial instrumentsdesignated as cash flow hedges 2 (1,389) – –At end of the year 84,090 58,216 755 426The deferred tax liabilities arise as a result of:Excess of net book value over tax written down value ofproperty, plant and equipment 46,211 22,499 227 54Allowance for doubtful debts and inventoryobsolescence (7,802) (5,026) – –Other temporary differences (2,992) (6,088) 528 372Changes in fair value of derivative financial instrumentsdesignated as cash flow hedges – (2) – –Intangible assets 48,673 46,833 – –84,090 58,216 755 426