1. Information on an entity's operating segments is shown below: Operating segments % Revenue % Profit % Asset А 38% 25% 40% В 9% 4% 5% C 7% 12% 9% 8% 6% 22% E 6% 7% 8% F 32% 47% 16% Total 100% 100% 100% Requirement: Identify the reportable segments under the quantitative thresholds of PFRS 8.
Q: 12,500 b. 18,375 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500 а. с. 21,875 d. 31,250
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Topic: OPERATING SEGMENTS
Requirement: (show solutions)
Identify the reportable segments under the quantitative thresholds of PFRS 8
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- Choose the correct. Which of the following is a criterion for determining whether an operating segment is separately reportable?a. Segment liabilities are 10 percent or more of consolidated liabilities.b. Segment profit or loss is 10 percent or more of consolidated net income.c. Segment assets are 10 percent or more of combined segment assets.d. Segment revenues from external sales are 5 percent or more of combined segment revenues from external sales.5. In the income statement for the current year, the entity which is subject to the requirements of segment report, reported external sales of P60,000,000, internal sales of P5,000,000, expenses of P45,000,000. The combined total assets of all operating segments at year-end amounted to P56,000,000. What is the lowest amount of external revenue that should be disclosed by reportable segments? A. 45,000,000 B. 15,000,000 C. 6,500,000 D. 3,750,000 E. None of themAn operating segment under IFRS is identified as a reportable segment if a.its revenue is greater than 10% of the combined revenue of all the company's operating segments. b. its identifiable assets are greater than 10% of the combined assets of all operating segments. c. the absolute amount of its profit (loss) is 10% or more of the greater in absolute amount, of the combined operating segments' profit, or of the combined operating segments' loss. d. any of the above options are satisfied.
- What is the minimum number of operating segments that must be separately reported?a. Ten.b. Segments with at least 75 percent of revenues as measured by the revenue test.c. At least 75 percent of the segments must be separately reported.d. Segments with at least 75 percent of the revenues generated from outside parties.Choose the correct. What is the minimum number of operating segments that must be separately reported?a. Ten.b. Segments with at least 75 percent of revenues as measured by the revenue test.c. At least 75 percent of the segments must be separately reported.d. Segments with at least 75 percent of the revenues generated from outside parties.Which of the following is a criterion for determining whether an operating segment is separately reportable?a. Segment liabilities are 10 percent or more of consolidated liabilities.b. Segment profit or loss is 10 percent or more of consolidated net income.c. Segment assets are 10 percent or more of combined segment assets.d. Segment revenues from external sales are 5 percent or more of combined segment revenues from external sales.
- An entity shall report information about an operating segment that meets any of the following quantitative thresholds except. Choices; The segment revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of combined revenue, internal and external, of all operating segments. The assets of the segment are 10% or more of the combined assets of all operating segments. The absolute amount of profit or loss of the segment is 10% or more of the greater in absolute amount of combined profit of all operating segments that reported a profit. The absolute amount of profit or loss of the segment is 10% or more of the greater in absolute amount of combined loss of all operating segments.The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomVincenzo Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Required:Calculate, explain, and determine which of the segments are reportable based on the:a. Revenue testb. Operating profit (loss) testc. Identifiable assets testd. 75 percent combined revenue test
- 10. Taylor Company, a publicly owned entity, assesses performance and makes operating decisions using the following information for its reportable segments: Total revenue, P7,680,000; Total profit and loss, P406,000. The total profit and loss included intersegment profit of P61,000. In addition, Taylor has P5,000 of common costs for its reportable segments that are not allocated in reports reviewed by the chief operating decision maker. What amount should Taylor report as segment profit? a. 350,000 b. 345,000 c. 411,000 d. 406,000B Incorporated provided the following data with respect to their segments: Segment Revenues Profit/Loss Identifiable Assets A 40 million 3 million 80 million B 20 million 4 million 70 million C 15 million (5 million) 60 million D 50 million (1 million) 100 million E 5 million (300,000) 30 million F 8 million (1.3 million) 20 million Total 138 million (600,000) 360 million Using the profit/loss test, what is the minimum amount of profit/loss for a segment to be considered as reportable: a. 700,000 b. 60,000 c. 600,000 d. 820,000 e. Answer not among theThe following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income