I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
76
4.
SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.17 Intangible assets
The costs incurred for the registrations of trademarks are immaterial and written off to profit or loss in the
financial period in which it is incurred.
Research expenditure including the design and production of prototypes of new samples are written off to
profit or loss in the financial period in which it is incurred.
4.18 Operating segments
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 chief operating decision maker of the Group 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:
(a)
Its reported revenue, including both sales to external customers and intersegment sales or transfers, is
ten percent (10%) or more of the combined revenue, internal and external, of all operating segments.
(b)
The absolute amount of its reported profit or loss is ten percent (10%) 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.
(c)
Its assets are ten percent (10%) 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 percent (75%) of
the revenue of the Group. 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 purpose.
4.19 Earning per share
(a)
Basic
Basic earnings per ordinary share for the financial year is calculated by dividing the profit for the financial
year attributable to equity holders of the parent by the weighted average number of ordinary shares
outstanding during the financial year.
(b)
Diluted
Diluted earnings per ordinary share for the financial year is calculated by dividing the profit for the financial
year attributable to equity holders of the parent by the weighted average number of ordinary shares
outstanding during the financial year adjusted for the effects of dilutive potential ordinary shares.
