Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 94 30. RELATED PARTY DISCLOSURE (continued) (c) Compensation of key management personnel Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the entity, directly and indirectly, including any Director (whether executive or otherwise) of the Group and the Company. The remuneration of the Directors and other key management personnel during the financial year were as follows: Group Company 2015 2014 2015 2014 RM RM RM RM Short term employee benefits 2,192,144 2,173,865 1,495,936 1,411,757 Contributions to defined contribution plan 286,751 427,360 211,683 357,359 2,478,895 2,601,225 1,707,619 1,769,116 31. OPERATING SEGMENTS Excel Force and its subsidiaries are principally engaged in the development, provision and maintenance of computer software application solutions for the financial services industry. Excel Force has arrived at three (3) reportable segments that are organised and managed separately according to the nature of products and services, which requires different business and marketing strategies. The reportable segments are summarised as follows: (a) Application solutions division - Sales of software application and product on an outright purchase basis (b) Maintenance services division - Provision of maintenance services (c) Application services provider division - Income from outsourcing services charge which is volume and transaction based The accounting policies of operating segments are the same as those described in the summary of significant accounting policies. The Group evaluates performance on the basis of profit or loss from operations before tax. Group income taxes are managed on a group basis and are not allocated to operating segments. Inter-segment revenue is priced along the same lines as sales to external customers and is eliminated in the consolidated financial statements. These policies have been applied consistently throughout the current and previous financial years. Segment assets exclude tax assets and segment liabilities exclude tax liabilities. Details are provided in the reconciliations of segment assets and liabilities to the Group position.