FORGING AHEAD - Tradewinds Plantation Berhad

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FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
35. OPERATING SEGMENTS
The Group’s operations primarily comprise cultivation of oil palm and rubber trees, processing of palm oil and provision of
plantation management and advisory services (‘Plantation Business’) and property development.
In the previous financial year, no segmental information had been prepared as the results from property development activities
were not significant and therefore the results of the Group for the previous financial year were derived predominantly from
the Plantation Business.
Following the adoption of FRS 8 – Operating Segments, the Group has arrived at three reportable segments that are
organised and managed separately according to the nature of the products and services, specific expertise and technologies
requirements, which requires different business and marketing strategies. The reportable segments are summarised as
follows:
(i) Plantation
Cultivation of oil palm and rubber trees, processing of palm oil and provision of plantation management and advisory
services.
(ii) Property development
Development of residential and commercial properties.
(iii) Investment holding
Group-level corporate services, treasury functions and investing activities.
Other non-reportable segment comprises dormant subsidiaries and subsidiaries which have ceased business operations.
The Group evaluates performance on the basis of profit or loss from operations before tax not including non-recurring losses,
such as restructuring costs.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third
parties.
Segment assets exclude tax assets and segment liabilities exclude tax liabilities.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010