Creative 2009 Annual Report Download - page 55

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55
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
(d) Capital risk
The Group’s objectives when managing capital are to ensure that the Group is adequately capitalised and to maintain an
optimal capital structure. In order to maintain or achieve an optimal capital structure, the Group may adjust the amount of
dividend payment, return capital to shareholders, issue new shares, buy back issued shares or obtain new borrowings.
As at 30 June 2009, the Group does not have any outstanding bank borrowings and the Group is not subject to any externally
imposed capital requirements.
31. RELATED PARTY TRANSACTIONS
In addition to the information disclosed elsewhere in the financial statements, the following transactions took place between
the Group and related parties at terms agreed between the parties:
(a) Sales and purchases of goods and services
฀ Group
฀ ฀ 2009฀ 2008฀
฀ US$’000฀ US$’000
฀
฀ Sales฀of฀goods฀and/or฀services฀to฀associated฀companies฀ 1,736฀ 956
฀ Purchases฀of฀goods฀and/or฀services฀from฀associated฀companies฀฀ 744฀ 419
Outstanding balances at 30 June 2009, arising from sale/purchase of goods and services, are set out in Notes 11 and 21
respectively.
(b) Key management personnel compensation
Key management personnel compensation is as follows:
฀ Group
฀ ฀ 2009฀ 2008฀
฀ US$’000฀ US$’000
฀
฀ Short-term฀employees฀benefits฀ 2,634฀ 2,941
฀ Share-based฀expense฀ 614฀ 829
฀ ฀ 3,248฀ 3,770
Included in the above is total compensation to the Chairman and Chief Executive Officer of the Company amounting to
S$1 (2008: S$1).
32. SEGMENT INFORMATION
Management determines the operating segments based on the reports reviewed and used by the chief operating decision-
maker (“CODM”) to make strategic decisions.
The CODM considers the business from a geographic segment perspective. Geographically, management considers the
performance of the business of the sale of advanced multimedia solutions for personal computers and personal digital
entertainment products in Asia Pacific, Europe and The Americas.
The reportable operating segments derive their revenue primarily from the sale of advanced multimedia solutions for personal
computers and personal digital entertainment products. In addition, services within Asia Pacific include investment holding
and this is included within the reportable operating segment as it is included in the reports provided to the CODM.
AR09 pg1-64_Final.indd 55 10/2/2009 10:38:11 AM