86
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
NOTES TO
FINANCIAL STATEMENTS
30 June 2015
34 SEGMENT INFORMATION
The Group is primarily engaged in four main operating divisions namely, burn-in services, burn-in boards and
boards manufacturing, engineering services and equipment distribution and imaging equipment and energy
efficient products. Management monitors performance by the four main operating divisions and the division
results are provided to the chief operating decision maker.
Principal activities of each reportable segment are as follows:
Burn-in and Related Services (Burn-in services)
Burn-in is a process whereby the individual integrated circuit (“IC”) chips is stressed at high temperature to
weed out any defects caused during the assembly process.
Burn-In Boards and Boards Related Products (Manufacturing)
Manufacturing comprises the design and assembly of printed circuit boards used for burn-in and reliability
testing of IC chips.
Engineering Services and Equipment Distribution (Engineering)
This includes system integration projects, equipment manufacturing, provision of technical services and
distribution of third party products.
Imaging Equipment and Energy Efficient Products (Imaging)
Imaging comprises of the businesses in life sciences systems and instrument industry, and energy efficient
products-focused in the area of Light Emitting Diode and high brightness lighting products and systems.
This segment is disclosed as discontinued operations (Note 27).
(a)
Segment revenue and expenses
Segment revenue and expenses are revenue and expenses reported in the consolidated financial
statements that either are directly attributable to a segment or can be allocated on a reasonable
basis to a segment.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in Note 2. Segment profit represents the profit earned by each segment without allocation
of central administration costs, rental income, interest revenue and interest expense, and income
tax expense. This is the measure reported to the chief operating decision maker for the purposes of
resource allocation and assessment of segment performance.
(b)
Segment assets and liabilities
Segment assets are all operating assets that are employed by a segment in its operating activities and
are either directly attributable to the segment or can be allocated to the segment on a reasonable
basis.
Segment liabilities are all operating liabilities that are employed by a segment in its operating activities
and are either directly attributable to the segment or can be allocated to the segment on a reasonable
basis.
For the purposes of monitoring segment performance and allocating resources between segments,
the chief operating decision maker monitors the assets attributable to each segment.
All assets are allocated to reportable segments other than financial assets of cash, fixed and cash
deposits, and investments. Assets used jointly by reportable segments are allocated on the basis of
the revenues earned by individual reportable segments.
