Annual Report 2019

182 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 12 Segment reporting (continued) (a) Segment results, assets and liabilities For the purposes of assessing segment performance and allocating resources between segments, the Group’s CODM monitors the results, assets and liabilities attributable to each reportable segment on the following bases: Revenue and expenses are allocated to the reportable segments with reference to the revenue generated and expenses incurred by those segments. The measure used for reporting segment profit is net profit after taxation, adjusted for head office or corporate administration costs which are not specifically attributable to individual segments. Inter- segment revenue is priced with reference to the price charged to external parties for similar transactions. Segment assets and segment liabilities include all current and non-current assets and liabilities, respectively, which are directly managed by the segments. Information regarding the Group’s reportable segments for the years ended 31 December 2019 and 2018 is set out below. Franchised bus operation Property holdings and development All other segments Total 2019 2018 2019 2018 2019 2018 2019 2018 (Note) (Note) $’000 $’ 000 $’000 $’ 000 $’000 $’ 000 $’000 $’ 000 Revenue from external customers 7,732,512 7,593,067 66,972 69,830 312,717 346,378 8,112,201 8,009,275 Inter-segment revenue 971 491 5,717 5,298 9,696 11,569 16,384 17,358 Reportable segment revenue 7,733,483 7,593,558 72,689 75,128 322,413 357,947 8,128,585 8,026,633 Reportable segment profit 368,022 471,151 54,792 53,904 60,261 68,858 483,075 593,913 Interest income 1,560 416 – – – – 1,560 416 Interest expense (32,182) (23,677) – – – – (32,182) (23,677) Depreciation and amortisation for the year (916,600) (868,332) (6,636) (6,238) (43,371) (38,350) (966,607) (912,920) Staff costs (4,385,633) (4,034,164) – – (121,295) (135,311) (4,506,928) (4,169,475) Share of profits of associates – – – – 21,544 23,769 21,544 23,769 Income tax expense (72,950) (93,728) (10,756) (10,650) (10,306) (12,815) (94,012) (117,193) Reportable segment assets 9,582,826 8,587,994 2,649,389 2,421,744 1,795,491 1,806,705 14,027,706 12,816,443 – including interest in associates – – – – 606,930 610,948 606,930 610,948 Additions to non-current segment assets during the year 1,025,751 1,319,159 232,926 83,889 28,191 91,833 1,286,868 1,494,881 Reportable segment liabilities 4,035,344 3,541,108 1,555,638 1,538,586 116,313 103,554 5,707,295 5,183,248 Note: The Group has initially applied HKFRS 16 at 1 January 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See note 1(c).