Vtech 2012 Annual Report Download - page 49

47
VTech Holdings Ltd Annual Report 2012
1 Segment Information
The Group manages its businesses by divisions, which are
organised by geography. In accordance with IFRS 8 – Operating
segments and in a manner consistent with the way in which
information is reported internally to the Group’s most senior
executive management for the purposes of resource allocation and
performance assessment, the Group has presented the following
reportable segments.
• NorthAmerica(includingtheUnitedStatesandCanada)
• Europe
• AsiaPacific
• Others,whichcoverssalesofelectronicproductstotherestof
the world.
The Company is domiciled in Bermuda. The results of its revenue
from external customers located in North America, Europe,
Asia Pacific and elsewhere are set out in the table below.
Each of the above reportable segments primarily derive their
revenue from the sale of telecommunication products, electronic
learning products and products from contract manufacturing
services to customers in the relevant geographical region.
All of these products and services are manufactured and performed
in the Group’s manufacturing facilities located primarily in the
People’s Republic of China (“PRC”) under the Asia Pacific segment.
For the purposes of assessing segment performance and allocating
resources between segments, the Group’s senior executive
management monitors the results and assets attributable to each
reportable segment on the following bases:
(a) Segment revenues and results
Revenue is allocated to the reporting segment based on the
location of the external customers. Expenses are allocated to the
reportable segments with reference to sales generated by those
segments and the expenses incurred by those geographical
locations or which otherwise arise from the depreciation or
amortisation of assets attributable to those segments.
The measure used for reporting segment profit is operating profit.
In addition to receiving segment information concerning operating
profit, management is provided with segment information
concerning revenue, depreciation and amortisation, and
impairment of assets.
(b) Segment assets and liabilities
Segment assets include all tangible and intangible assets and
current assets with the exception of deferred tax assets and other
corporate assets including taxation recoverable and investments.
Segment liabilities include trade creditors, bills payable, accruals,
and provisions for electronic product warranties attributable to the
manufacturing and sales activities of the individual reportable
segments with the exception of deferred tax liabilities and taxation
payable.
Principal Accounting Policies (Continued)
W Dividends
Dividends proposed or declared after the balance sheet date are
not recognised as a liability at the balance sheet date.
X Segment Reporting
Operating segments, and the amounts of each segment item
reported in the financial statements, are identified from the
financial information provided regularly to the Group’s most senior
executive management for the purposes of allocating resources to,
and performance assessment.
Individually material operating segments are not aggregated for
financial reporting purposes unless the segments have similar
economic characteristics and are similar in respect of the nature of
products and services, the nature of production processes, the type
or class of customers, the methods used to distribute the products
or provide the services, and the nature of the regularity
environment. Operating segments which are not individually
material may be aggregated if they share a majority of these
criteria.
Y Related Parties
(a) A person, or a close member of that person’s family, is related
to the Group if that person:
(i) has control or joint control over the Group;
(ii) has significant influence over the Group; or
(iii) is a member of the key management personnel of the
Group or the Group’s parent.
(b) An entity is related to the Group if any of the following
conditions apply:
(i) The entity and the Group 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 Group or an entity
related to the Group.
(vi) The entity is controlled or jointly controlled by a person
identified in (a).
(vii) A person identified in (a)(i) 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 a person are those family members
who may be expected to influence, or be influenced by, that
person in their dealings with the entity.