INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
36.
SEGMENT INFORMATION
For management purposes, the Group is organised into business units based on their products and services and has
two reportable operating segments as follows:
Plantations segment
Plantations segment is mainly involved in the development and maintenance of oil palm, rubber and sugar cane
plantations and other business activities relating to palm oil, rubber and sugar cane processing, marketing and selling.
This segment is also involved in the cultivation of cocoa, coconut, tea and industrial timber plantations (Hutan Tanaman
Industri or “HTI”).
Edible oils and fats segment
Edible oils and fats segment produces, markets and sells edible oil, margarine, shortening and other related products
and CNO and its derivative products.
Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss
and is measured consistently with operating profit or loss in the consolidated financial statements. However, Group
financing (including finance costs and finance income), foreign exchange gains/losses and income taxes are managed
on a group basis and are not allocated to operating segments.
Transfer prices between business segments are based on terms agreed between the parties. Segment revenues,
segment expenses and segment results include transfers between business segments. Those transfers are eliminated
for purposes of consolidation.
Others/eliminations for segment assets and liabilities relates primarily to eliminations between inter-segment
receivables and payable, and the Company’s asset and liabilities.
