71
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Related Parties (Cont’d)
(b)
An entity is related to a reporting entity if any of the following conditions applies:-
(i)
the entity and the reporting entity are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others).
(ii)
one entity is an associate or joint venture of the other entity (or an associate or joint venture of a
member of a group of which the other entity is a member).
(iii)
both entities are joint ventures of the same third party.
(iv)
one entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v)
the entity is a post-employment benefit plan for the benefit of employees of either the reporting
entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the
sponsoring employers are also related to the reporting entity.
(vi)
the entity is controlled or jointly controlled by a person identified in (a) above.
(vii) a person identified in (a)(i) above has significant influence over the entity or is a member of the
key management personnel of the entity (or of a parent of the entity).
Close members of the family of an individual are those family members who may be expected to influence,
or be influenced by, that individual in their dealings with the entity.
4.
OPERATING SEGMENTS
The Group has one reportable segment as the Group is principally engaged in one business segment which
is the provision of engineering services.
The Group Chief Executive Officer (the chief operating decision maker) review internal management report
at least on a quarterly basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are
expected to be used for more than one period.
The Group is organised into the following geographical segments:
-
Malaysia
-
Singapore
-
Philippines
-
Taiwan
-
China
-
Indonesia
