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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
64
Group Structure and Performance
3
NOTE 3
SEGMENT INFORMATION – HOW THE GROUP IS ORGANISED AND MANAGED
(continued)
Business performance – measurement of Segment results
Segment performance is measured by regular profit and regular profit after tax attributable to members. These
results are non-statutory profit measures and represent profit from continuing operations before non-regular
items. The measurement basis in general, excludes the effects of non-regular items of income and expense which
by nature are outside the ordinary course of business or part of ordinary activities but are unusual due to their size.
Regular profit after tax attributable to members is the main measure of segment profit.
A reconciliation between regular profit after tax attributable to members and profit after tax is set out below, and
for each segment is set out in note 3a.
The Directors have presented this information which is used by the Chief Operating Decision Maker, as they
consider the disclosure enhances the understanding of the results to members and users of the financial
statements. Non-regular items are disclosed in note 3b.
The allocation of income and expense items between regular and non-regular profit is consistent with the prior
year. Transactions between business segments are on an arm’s length basis in a manner similar to transactions
with third parties. Segment revenue, expenses and results include transactions between business segments.
These transfers are eliminated on consolidation.
Reconciliation between regular profit after tax attributable to members and profit after tax:
2016
2015
$’000
$’000
Regular profit after tax attributable to members
177,222
162,405*
Non-regular items – net of tax
Gain on disposal of equity investments
11,713
2,410
Gain on disposal of equity accounted associate
1,489
–
Loss on initial recognition of equity accounted associate
(1,682)
–
Gain on deemed disposal of equity accounted associates
83,318
1,450
Impairment (expense)/reversal on equity accounted associates
(7,554)
72,947
Impairment (expense) on equity investments
(12,023)
(16,170)
Impairment (expense) on oil producing and exploration assets
(13,277)
(21,949)
Impairment (expense) on goodwill
–
(2,480)
Impairment (expense) – copper assets
(22,374)
(58,114)
Impairment (expense) on non-current assets – coals to liquids facility
–
(10,638)
Impairment (expense) on other assets
(6,675)
(6,632)
Share of significant (expenses) from associate entities
(29,834)
(23,391)
Deferred tax (expense) recognised on equity accounted associate entities
(20,900)
(13,902)
Acquisition costs expensed
(19,042)
–
Land access compensation
2,982
–
Other items
6,058
(2,606)
Total non-regular losses after tax attributable to members
(27,801)
(79,075)*
Profit after tax attributable to members
149,421
83,330
*
The regular profit after tax for 2015 has been restated by transferring expenses of $5.956 million from regular profit to non-regular items
following a reallocation by an Associated Entity.