Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 121 FINANCIAL STATEMENTS CORPORATE GOVERNANCE ANALYSIS OF SHAREHOLDINGS OTHER INFORMATION ANNUAL GENERAL MEETING 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED) Critical accounting estimates and assumptions (continued) (c) Provisions for liabilities and charges The Group recognises provisions for liabilities and charges when it has a present legal or constructive obligation arising as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. The recording of provision requires the application of judgments about the ultimate resolution of these obligations. As a result, provisions are reviewed at each reporting date and adjusted to reflect the Group’s current best estimate. See Note 28 to the financial statements for the impact on change in estimate in relation to the provision for site rectification and decommissioning works. 5 SEGMENT REPORTING The Group operates in four key segments as follows: (i) mobile services comprise postpaid mobile, prepaid mobile, mobile data, broadband and roaming services; (ii) enterprise fixed services comprise a full suite of voice services, data services, Very Small Apparatus Terminal (“VSAT”) services and Internet Protocol (“IP”) and managed services to cater for business customers; (iii) international gateway services comprise services to international telecommunications carriers for termination of traffic into Malaysia, services to send the Group’s own international traffic abroad and bandwidth leasing services; and (iv) home services comprise fixed voice services and data services to home customers. The Group also provides other services which are currently not significant enough to be reported separately. Inter-segment revenues comprise network services and management services rendered to other business segments within the Group. Some transactions are transacted at normal commercial terms that are no more favourable than those available to other third parties whilst the rest are allocated based on an equitable basis of allocation. There have been no significant changes to the basis of pricing inter-segment transfers. The Group assesses the performance of the operating segments based on measure of revenue, EBITDA (1) and profit from operations. Finance income and costs are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Group. Tax expenses are not allocated to segments, as this type of activity is measured at entity based rather than taxation on segments. Additions to non-current assets are primarily the total costs incurred during the financial year to acquire property, plant and equipment and intangible assets. Segment assets and liabilities are not regularly provided to the chief operating decision makers. Hence, no disclosure is made on the segment assets and liabilities. Note: (1) Defined as profit before finance income, finance costs, tax, depreciation, amortisation and allowance for write down of identified network costs.