PRG Holdings Berhad Annual Report 2020

37. OPERATING SEGMENTS (continued) The segmentation for the respective investment holding companies will be determined by the segment of its respective subsidiaries. The above is in line with the manner the internal management reporting and operating results were reviewed by the Group’s management to make decisions about the resources to be allocated to the segments and to assess their performance. The accounting policies of operating segments are the same as those described in the summary of significant accounting policies. The Group evaluates performance on the basis of profit or loss from operations before tax. Inter-segment revenue is priced along the same lines as sales to external customers and is eliminated in the consolidated financial statements. These policies have been applied consistently throughout the current and previous financial years. Segment assets exclude tax assets. Segment liabilities exclude tax liabilities. Even though loans and borrowings arise from financing activities rather than operating activities, they are allocated to the segments based on relevant factors. Details are provided in the reconciliations from segment assets and liabilities to the position of the Group. PRG HOLDINGS BERHAD 172 Notes to the Financial Statements 31 December 2020 cont’d