23.
DEFERRED INCOME
Deferred income represents the excess of sale price over the estimated fair value of the leasehold
property at 15 Jurong Port Road arising from the sale and leaseback of the property. The fair value
of the leasehold property was determined by an external valuation using a Direct Sale Comparison
Approach valuation method. The deferred income of $10 million is amortised to profit or loss over
the seven year lease period commencing February 2013. Deferred income is classified as follows:
Group and Company
2015
2014
$’000
$’000
Current
1,429
1,429
Non-current
4,405
5,833
5,834
7,262
24.
PROVISION FOR REINSTATEMENT COSTS
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Provision for reinstatement costs
1,000
1,000
700
700
The movement in provision for reinstatement costs is as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
At 1 January and 31 December
1,000
1,000
700
700
Provision for reinstatement costs is made in respect of the Group and Company’s leasehold properties
to fulfil the obligations under the lease agreements. Outflows are expected only at the end of the
lease tenure of the leasehold properties in year 2020 (2014: 2020).
102
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
