Annual Report 2012 - ecoWise Holdings Limited

86ecoWise Holdings Limitedannual report 201231 OCTOBER 2012NOTES TO THE FINANCIAL STATEMENTS4. FINANCIAL INFORMATION BY OPERATING SEGMENTS4A. Information about Operating Segment Profit or Loss, Assets and LiabilitiesDisclosure of information about operating segments, products and services, the geographical areas and themajor customers is made as required by FRS 108 – Operating Segments. This disclosure standard has noimpact on the reported results or financial position of the Group.For management reporting purposes, the Group has three operating segments, which form the Group’sstrategic business units. The strategic business units offer different products and services and are managedseparately because they require different technologies and marketing strategies. For each of the strategicbusiness units, management reviews internal management reports on at least a quarterly basis.The following summary describes the operations in each of the Group’s operating segments:(a)Renewable Energy – Design, build and operate biomass co-generation systems, generate power forsale and provision of services related to the applications of heat.(b)Resource Recovery – Process, recycle and repurpose waste and salvageable materials intoenvironmentally friendly products for industrial applications, such as washed copper slag, compostand retreaded tyres.(c)Integrated Environmental Management Solutions – Provision of resource management and integratedenvironmental engineering solutions for industrial waste and energy management, including designing,optimising, engineering, procurement, fabricating, commissioning, managing and maintenance ofwaste and energy management facilities.Performance is measured based on segment results before allocation of corporate management fees, shareof results from associates, finance income, dividend income, finance costs and income tax, as included inthe internal management reports. Segment results is used to measure performance as management believesthat such information is the most relevant in evaluating the results of the operating segments relative to otherentities that operate in similar industries.Inter-segment sales are based on agreed price lists. Internal transfer pricing policies of the Group are as faras practicable based on market prices. The accounting policies of the operating segments are the same asthose disclosed in Note 2 to the financial statements.The information about the operating segment profit or loss, assets and liabilities is set out below.