Bursa Malaysia • Annual Report 2013
176
Financial Reports
40. Segment information
(a) Reporting format
For management reporting purposes, the Group is organised into operating segments based on market segments as the Group’s risks and rates of
return are affected predominantly by the macro environment of the different markets.
The securities, derivatives and others market segments are managed by the respective segment divisional heads responsible for the performance of
the respective segments under their charge.
(b) Market segments
The four major market segments of the Group are as follows:
(i) The securities market mainly comprises the provision and operation of the listing, trading, clearing, depository services and provision and
dissemination of information relating to equity securities quoted on exchanges for the securities market.
(ii) The derivatives market mainly comprises the provision and operation of the trading, clearing, depository services and provision and dissemination
of information relating to derivatives products quoted on exchanges for the derivatives market.
(iii) The exchange holding business refers to the operation of the Company which functions as an investment holding company.
(iv) The others mainly comprises the provision of a Sha’riah compliant commodity trading platform, a reporting platform for bond traders and the
provision of an offshore market.
(c) Allocation basis and transfer pricing
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate assets and liabilities, overheads and income tax expenses.
Management monitors the operating results of its market segments separately for the purpose of making decisions about resource allocation and
performance assessment.
Transfer prices between segments are set on an arm’s length basis in a manner similar to transactions with third parties.
Notes to the Financial Statements
31 December 2013
