SEC Form 17-A: Annual Report - the solid group inc website

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(i)
Estimating Reserve for Warranty Costs
The Group offers a one-year warranty for each consumer electronic product sold.
Management estimates the related provision for future warranty costs based on a
certain percentage of sales, as determined based on historical warranty claim
information as well as recent trends that might suggest that past cost information
may differ from expectations. Warranty costs also include the actual cost of
materials used in repairing the electronic products.
Provision for warranty claims recognized and the outstanding balance of Reserve
for Warranty Costs are discussed on Note 16.
(j)
Valuation of Post-employment Defined Benefit
The determination of the Group’s obligation and cost of post-employment
benefit is dependent on the selection of certain assumptions used by actuaries in
calculating such amounts. Those assumptions are described in Note 22.2 and
include, among others, discount rates, expected return on plan assets and salary
increase rates. In accordance with PFRS, actual results that differ from the
assumptions are accumulated and amortized over future periods and therefore,
generally affect the recognized expense and recorded obligation in such future
periods.
The amounts of estimated present value of the retirement benefit obligation and
the analysis of the movements in the present value of retirement benefit
obligation are presented in Note 22.2.
4. SEGMENT INFORMATION
4.1 Business Segments
The Group’s operating businesses are organized and managed separately according to
the nature of products and services provided, with each segment representing a strategic
business unit that offers different products and serves different markets. The Group’s
different business segments are as follows:
(a)
(b)
(c)
Broadband services segment is presently engaged in providing data transport
services, including audio and video, and connectivity through its broadband cable
infrastructure;
Related support services segment is engaged in the business of rendering after
sales service operations as the recognized authorized Service Network for
products of a third party and in manufacturing plastic injection molding parts
(see Notes 1.2 and 5);
Real estate segment is involved in the leasing and development and sale of
industrial and other real estate properties;