293 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 06 / FINANCIAL STATEMENTS 01 02 03 04 05 07 08 09 49. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONT’D.) The methods and assumptions used in estimating the fair values of financial instruments are as follows (cont’d.): (vi) Deposits and placements of banks and other financial institutions The carrying values of these financial instruments with remaining maturities of less than one year are expected to approximate their fair values due to the relatively short maturity of the financial instruments. For deposits and placements with maturities of one year and above, the estimated fair values are based on discounted cash flows using prevailing money market interest rates at which similar deposits and placements would be made with financial institutions of similar credit risk and remaining period to maturities. (vii) Borrowings The fair values of borrowings are estimated based on expected future cash flows discounted at prevailing variable rates offered for similar borrowings. 50. SEGMENTAL REPORTING The business segment results are prepared based on the Group’s internal management reporting, which reflects the Group’s management reporting structure. The Group is organised into six major operating divisions. The divisions form the basis on which the Group reports its segment information. (i) Investment banking - Investment banking business, treasury and related financial services; (ii) Stockbroking - Dealings in securities and investment related services; (iii) Listed derivatives - Futures broking; (iv) Asset and Wealth Management - Management of funds, unit trusts and robo-advisory; and (v) Corporate and others - Money lending and financing, e-services management platform and support services comprising all middle and back office functions, the costs of which are not allocated out to business segments and include business operations conducted by the Group’s associates in the Kingdom of Saudi Arabia, Malaysia and Sri Lanka and joint venture, Rakuten Trade Sdn Bhd. Rakuten Trade Singapore Pte. Ltd was disposed on 6 September 2024 and has since become a wholly-owned subsidiary of Rakuten Trade Sdn Bhd. The Group has disposed two associates during the financial year. Please refer to Note 44. Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments. 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 which, in certain respects as explained in the table below, is measured differently from operating profit or loss that is reported in the consolidated financial statements. Group income taxes are managed on group basis and are not allocated to operating segments. Transfer prices between operating segments are determined on an arm’s length basis in a manner consistent with transactions with third parties.
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