FORGING AHEAD - Tradewinds Plantation Berhad

130
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.22 Operating segments
Following the adoption of FRS 8 Operating Segments during the current financial year, operating segments are defined
as components of the Group that:
(a) engages in business activities from which it may earn revenues and incur expenses (including revenues and
expenses relating to transactions with other components of the Group);
(b) whose operating results are regularly reviewed by the Group’s chief operating decision maker in making decisions
about resources to be allocated to the segment and assessing its performance; and
(c) for which discrete financial information is available.
An operating segment may engage in business activities for which it has yet to earn revenues.
The Group reports separately information about each operating segment that meets any of the following quantitative
thresholds:
(i) Its reported revenue, including both sales to external customers and intersegment sales or transfers, is ten (10)
percent or more of the combined revenue, internal and external, of all operating segments.
(ii) The absolute amount of its reported profit or loss is ten (10) percent or more of the greater, in absolute amount of:
(i) the combined reported profit of all operating segments that did not report a loss; and
(ii) the combined reported loss of all operating segments that reported a loss.
(iii) Its assets are ten (10) percent or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately
disclosed, if the management believes that information about the segment would be useful to users of the financial
statements.
Total external revenue reported by operating segments shall constitute at least seventy five (75) percent of the Group’s
revenue. Operating segments identified as reportable segments in the current financial year in accordance with the
quantitative thresholds would result in a restatement of prior period segment data for comparative purposes.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010