2009 - TDM Berhad

TDM Berhad (6265-P) 123Notes to the Financial Statements36. Segment Information(a)Reporting formatThe segment reporting format is determined to be business segments as the Group’s risks and rates of return are affected predominantlyby differences in the products and services produced. The operating businesses are organised and managed separately accordingto the nature of the products and services provided, with each segment representing a strategic business unit that offers differentproducts and serves different markets.(b)Business segmentsThe Group is organised into four major business segments:(i)PlantationCultivation of oil palms, sale of fresh fruit bunches and other related products.(ii)FoodIntegrated poultry farming and processing of related products.(iii)HealthProvision of consultancy and operations of specialist medical centres.(iv)OthersInvestment holding and provision of management services.The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business andhave been established on terms and conditions that are not materially different from those obtainable in transactions with unrelatedparties.No segment reporting by geographical area is prepared as the Group activities are mainly carried out in Malaysia.(c)Allocation basis and transfer pricingSegment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on areasonable basis. Unallocated items comprise mainly corporate assets, liabilities and expenses.Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with thirdparties. Segment revenue, expenses and results include transfers between business segments. These transfers are eliminated onconsolidation.