Directors - Boustead Holdings Berhad

Accounting Policies
(r) SEGMENTAL REPORTING
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The primary reporting segment information is in respect of business segments as the Group’s risk and
return are affected predominantly by the differences in the products and services it produces. The
secondary reporting segment information is in respect of geographical segments based on the country
in which customers are located. Currently, the Group operates principally in Malaysia, with no other
individual country contributing more than 10% of the consolidated revenue or assets.
Transactions between segments are carried out on arm’s length basis.
(s) LEASES
A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards
incident to ownership. All other leases are classified as operating leases. Operating lease payments are
recognised as an expense in the income statement on a straight-line basis over the term of the relevant
lease.
(t) ASSETS HELD FOR SALE
Non-current assets or disposal group are classified as being held for sale if their carrying amount is
recovered principally through a sale transaction rather than through continuing use. These assets are
measured at the lower of carrying amount and fair value less costs to sell when the sale is highly
probable and the asset or disposal group is available for immediate sale in its present condition subject
only to the terms that are usual and customary.
(u) GOODWILL
After initial recognition, goodwill is stated at cost less any accumulated impairment losses. Goodwill is
not amortised, but instead, it is reviewed for impairment at least annually and whenever events or
changes in circumstances indicate that the carrying value may be impaired.
For the purpose of impairment testing, goodwill is allocated to the related cash-generating units
monitored by management, usually at business segment level or statutory company level as the case
may be. Where the recoverable amount of the cash-generating unit is less than its carrying amount
including goodwill, an impairment loss is recognised in the income statement. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
Gains and losses on the disposal of an entity include the carrying amount of the goodwill relating to the
entity sold.