Annual Report 2011 - Food Junction

Notes to the Financial Statements (cont’d)
31 December 2011
26. Segment information
For management purposes, the Group is organised into business units based on their products and
services, and has three reportable operating segments as follows:
The food courts segment is the management of food courts.
The food and beverages (F&B) segment is in the sales of food and beverages.
The corporate segment is involved in Group-level corporate services.
Except as indicated above, no operating segments have been aggregated to form the above reportable
operating segments.
Management monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss which in certain respects, as explained in the table below, is measured
differently from operating profit or loss in the consolidated financial statements.
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 cash and bank
balances, fixed deposits, provision for income tax and deferred tax liabilities.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to
transactions with third parties. Segment revenue, expenses and results include transfers between
business segments. These transfers are eliminated on consolidation.
(a) Operating Segments
2011
Food
courts F&B Corporate Eliminations Group
$’000 $’000 $’000 $’000 $’000
Revenue:
Turnover
- external sales 22,920 32,792 – – 55,712
- inter-segment sales 5,877 – 1,860 (7,737) –
Other operating income 883 391 1,000 (1,000) 1,274
Total revenue 29,680 33,183 2,860 (8,737) 56,986
Results:
Interest income 384 (16) – – 368
Depreciation 2,105 909 – – 3,014
Other non-cash expenses
(Note i) 957 580 221 – 1,758
Taxation 725 388 (25) (18) 1,070
Segment profit/(loss) 4,209 (2,135) – (1,158) 916
Assets:
Segment assets (Note ii) 28,637 12,130 10,683 – 51,450
Liabilities:
Segment liabilities
(Note iii) (16,063) (4,004) (678) – (20,745)
Capital expenditure
(Note iv) 3,002 1,336 – – 4,338
Annual Report 89