Frontken Berhad Annual Report 2019

75 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Fair Value Measurements (Cont’d) For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:- Level 1 : Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the entity can access at the measurement date; Level 2 : Inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 : Inputs are unobservable inputs for the asset or liability. The transfer of fair value between levels is determined as of the date of the event or change in circumstances that caused the transfer. Earnings Per Ordinary Share Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for own shares held. Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, adjusted for the effects of all dilutive potential ordinary shares. 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 - Indonesia Notes To The Financial Statements (cont’d)