36. Segment reporting
Reporting format
The primary segment reporting format is determined to be business segments as the
Group’s risks and rates of return are affected predominantly by differences in the products
and services produced. Secondary information is reported geographically. The operating
businesses are organised and managed separately according to the nature of the products
and services provided, with each segment representing a strategic business unit that
offers different products and serves different markets.
Business segments
The Group has the following five main business segments:
Shipbuilding
:
Construction of vessels
Shiprepair and conversion
:
Provision of shiprepair and related services
Shipchartering and rental
:
Provision for chartering of vessels, transportation
services and rental of plant and machinery
Engineering
:
Provision of dredging engineering products and
services
Investment holding
:
Investment holding
Geographical segments
The Group operates in Singapore, Indonesia, Rest of Asia, Europe and other countries. In
presenting information on the basis of geographical segments, segment revenue is based
on the countries in which customers are invoiced.
Assets and capital expenditure are attributed to the location of those assets.
Allocation basis and transfer pricing
Segment results, assets and liabilities include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis. Group financing (including
finance costs) and income taxes are managed on a group basis and are not allocated to
operating segments.
Transfer prices between business segments are set on an arm’s length basis in a manner
similar to transactions with third parties. Segment revenue, expenses and results include
transfers between business segments. These transfers are eliminated on consolidation.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
162
