Definitions of Terms

Accounting policies

Specific principles, bases, conventions, rules and practices adopted by an entity in preparing and presenting its financial statements.

Business segment

A distinguishable component of an enterprise that is engaged in providing a product or service or group of related products or services, and that is subject to risks and returns that are different from those of other business segments.

Cash flows

Inflows and outflows of cash and cash equivalents.

Common costs

Operating expenses incurred by the enterprise for the benefit of more than one industry segment.

Consolidated financial information

Aggregate (financial) information relating to an enterprise as a whole whether or not the enterprise has consolidated subsidiaries.

Corporate assets

Assets maintained for general corporate purposes and not used in the operations of any industry segment.

Discontinued operation

Resulting from the sale or abandonment of an operation that represents a separate, major line of business of an enterprise; the assets, net profit or loss, and activities can be distinguished physically, operationally, and for financial reporting purposes.

Extraordinary items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.

General corporate expenses

Expenses incurred for the benefit of the corporation as a whole, which cannot be reasonably allocated to any segment.

Geographical segment

Distinguishable component of an enterprise engaged in operations in individual countries or groups of countries within particular geographic areas, as may be determined to be appropriate in the circumstances to reflect the nature of the enterprise's operations.

Identifiable assets

Those tangible and intangible assets used by an industry segment, including those the segment uses exclusively, and an allocated portion of assets used jointly by more than one segment.

Industry segment

A distinguishable component of an enterprise engaged in providing a different product or service or a different group of related products or services, primarily to unaffiliated customers. This term has been superseded by business segment.

Intersegment sales

Transfers of products or services, similar to those sold to unaffiliated customers, between industry segments or geographic areas of the enterprise.

Intrasegment sales

Transfers within an industry segment or geographic area.

Minority interest

That part of the net results of operations and of net assets of a subsidiary attributable to interests which are not owned, directly or indirectly through subsidiaries, by the parent.

Operating activities

The principal revenue producing activities of an enterprise and other activities that are not investing or financing activities.

Operating profit or loss

An industry segment's revenue minus all operating expenses, including an allocated portion of common costs.

Ordinary activities

Any activities which are undertaken by an enterprise as part of its business and such related activities in which the enterprise engages in furtherance of, incidental to or arising from, these activities.

Reportable segment

A business or geographical segment for which segment information is required to be disclosed.

Revenue

The gross inflow of economic benefits during a period arising in the ordinary course of business activities from sales to unaffiliated customers and from intersegment sales or transfers, excluding inflows from equity participants.

Segment accounting policies

The policies adopted for reporting the consolidated financial statements of the enterprise, as well as for segment reporting.

Segment assets

Operating assets employed by a segment in operating activities, whether directly attributable or reasonably allocable to the segment; these should exclude those generating revenues or expenses which are excluded from the definitions of segment revenue and segment expense.

Segment expense

Expense that is directly attributable to a segment, or the relevant portion of expense that can be allocated on a reasonable basis to a segment; it excludes extraordinary items, interest expense, losses on sales of investments or extinguishment of debt, equity method losses of associates and joint ventures, income taxes, and corporate expenses not identified with specific segments.

Segment revenue

Revenue that is directly attributable to a segment, or the relevant portion of revenue that can be allocated on a reasonable basis to a segment, and that is derived from transactions with parties outside the enterprise and from other segments of the same enterprise; it excludes extraordinary items, interest and dividend income, and gains on sales of investments or extinguishment of debt.

Transfer pricing

The pricing of products or services between industry segments or geographic areas.