Page 95 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
93
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(o) Segment reporting
An operating segment is a component of the Group that engages in business activities
from which it may earn revenues and incur expenses, including revenues and expenses that
relate to transactions with any of the Group’s other components. All operating segments’
operating results are reviewed regularly by the Group’s Chief Operating Decision Maker
(CODM) to make decisions about resources to be allocated to the segments and assess
their performance and for which discrete financial information is available.
Segment results, segment assets and segment liabilities that are reported to the Group’s
CEO include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise mainly head office expenses, central
financing costs, corporate assets and convertible debt securities issued by the Trust.
Segment capital expenditure is the total cost incurred during the year to acquire property,
plant and equipment and development cost on investment properties.
(p) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective
for annual periods beginning after 1 January 2013, and have not been applied in preparing
these financial statements. Those which may be relevant to the Group that are expected to
have a significant effect on the financial statements of the Group and the Company in future
financial periods, and which the Group does not plan to early adopt, are set out below.
Applicable for the Group’s 2014 financial statements
• FRS 110 Consolidated Financial Statementsintroduces a new control model that is
applicable to all investees, by focusing on whether the Group has power over an
investee, exposure, or rights to variable returns from its involvement with the investee
and ability to use its power to affect those returns. In particular, FRS 110 requires the
Group to consolidate investees that it controls on the basis of de facto circumstances.
The Group has re-evaluated its involvement with investees under the new control
model. Based on its assessment as at 31 December 2013, the Group does not expect
any material financial impact on the results and financial position from the adoption
of FRS 110.