CAHYA MATA SARAWAK ANNUAL REPORT 2016

191 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 43. SEGMENT INFORMATION Segmental information is prepared on the basis of the “management approach”, which requires presentation of the segments on the basis of internal reports about the components of the entity. During the financial year, the Group undertook an internal restructuring whereby the subsidiaries within the Samalaju Development Division were reclassified to the Property Development and Others Division. The Group is organised into business based on their activities, and has six reportable operating segments as follows: (i) Cement - manufacturing of cement, clinker and concrete products; (ii) Construction materials and trading - quarry operations, production and sale of premix, wires and general trading; (iii) Construction and road maintenance - civil engineering, road construction and maintenance; (iv) Property development and related services - property holding, development, project management, lodges accommodation and hotel operations; (v) Strategic investments - education and various investments through the associates and joint ventures; and (vi) Others - head office, management services, investment holding and dormant companies. For each of the divisions, the Group Managing Director reviews the internal management reports on a monthly basis and conducts performance dialogues with the divisions on a regular basis. The Group assesses the performance of the operating segments based on measure of revenue and profit before tax. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets, liabilities, income and expenses. Transfer prices between business segments are on an arm’s length basis in a manner similar to transactions with third parties. Segment revenue, expenses and results include transfer between business segments. These transfers are eliminated on consolidation. Segment analysis by geographical locations has not been presented as the Group’s operations are predominantly conducted in Malaysia.