WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...

198
WCT Berhad (66538-K)
annual report 2011
NOTES TO THE FINANCIAL STATEMENTS
31 December 2011
cont’d
51. CONTRACT DISPUTE cont’d
In accordance with the Group's accounting policy relating to contracts where the outcome cannot be estimated reliably,
revenue has been recognised only to the extent of contract costs incurred to date, which management considers is
not doubtful of recovery and therefore no provision has been made against the amounts due from the customer for
contract work. No profit has been taken up on the contract to date pending the outcome of the Group's claims and
conclusion of the arbitration proceedings.
52. SEGMENT INFORMATION
(a) Reporting format
The Group has 3 reportable segments as described below, which are the Group's strategic business units.
Management monitors the operating results of its business segments for the purpose of decision making.
Segment performance is evaluated based on profitability and is measured consistently with operating profit in
the consolidated financial statements. However, Group's financing and income taxes are managed on a group
basis and are not allocated to operating segments.
(b) Business segments
The following are the main business segments:
(i) civil engineering and construction - civil engineering works specialising in earthworks, highway construction
and related infrastructure works;
(ii) property development - the development of residential and commercial properties; and
(iii) property investment - holding of assets for capital appreciation and rental income.
(c) Geographical segments
The Group’s geographical segments are based on the location of the Group’s assets. Sales to external customers
disclosed in geographical segments are based on the geographical location of its customers. The Group’s business
segments operate in four main geographical areas:
(i) Malaysia - the operations in this area are principally civil engineering and constructions, property
development, trading, property investment and investment holding;
(ii) Middle East - the operations in this area are principally through the construction of a government
administration building in Doha, Qatar a shopping mall in Kingdom of Bahrain, construction and design of
highway and airport in Qatar, construction of sewerage and racecourse in Dubai and the construction of F1
Circuit in Abu Dhabi;
(iii) Others - primarily investment holding companies in Mauritius and Vietnam; and
(iv) India - the operations in this area are principally the construction of highway and concessionaires.
(d) Allocation basis and transfer pricing
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 and expenses.
Segment revenue, expenses and results include transfers between business segments. These transfers are
eliminated on consolidation.