107
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.20 Operating segments
Operating segments are defined as components of the Group that:
(a)
engages in business activities from which it could earn revenues and incur expenses (including revenues and expenses relating
to transactions with other components of the Group);
(b)
whose operating results are regularly reviewed by the chief operating decision maker of the Group particularly in making
decisions about resources to be allocated to the segment and assessing its performance; and
(c)
for which discrete financial information is available.
An operating segment may engage in business activities for which it has yet to earn revenues.
The Group reports separately information about each operating segment that meets any of the following quantitative thresholds:
(a)
Its reported revenue, including both sales to external customers and intersegment sales or transfers, is ten percent (10%) or more
of the combined revenue, internal and external, of all operating segments.
(b)
The absolute amount of its reported profit or loss is ten percent (10%) or more of the greater, in absolute amount of:
(i)
the combined reported profit of all operating segments that did not report a loss; and
(ii)
the combined reported loss of all operating segments that reported a loss.
(c)
Its assets are ten percent (10%) or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if the
management believes that information about the segment would be useful to users of the financial statements.
Total external revenue reported by operating segments shall constitute at least seventy-five percent (75%) of the revenue of the Group.
Operating segments identified as reportable segments in the current financial year in accordance with the quantitative thresholds
would result in a restatement of prior period segment data for comparative purposes.
4.21 Earnings per share
(a)
Basic
Basic earnings per ordinary share for the financial year is calculated by dividing the profit for the financial year attributable to
equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year.
(b)
Diluted
Diluted earnings per ordinary share for the financial year is calculated by dividing the profit for the financial year attributable to
equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year adjusted
for the effects of dilutive potential ordinary shares.
4.22 Fair value measurements
The fair value of an asset or a liability, except for lease transactions is determined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement
assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a
principal market, in the most advantageous market.
