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Problem 10-15 (IFRS) basy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 Revenue 1,800,000 Cost of goods sold (1,200,000) Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost Share in profit of associate 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Income before tax Income tax expense. 260,000 (. 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales . Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288-

Problem 10-15 (IFRS) basy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 Revenue 1,800,000 Cost of goods sold (1,200,000) Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost Share in profit of associate 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Income before tax Income tax expense. 260,000 (. 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales . Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288-

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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1. Prepare the disclosures required for operating segments.

 

 

Problem 10-15 (IFRS) Dasy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 1,800,000 (1,200,000) Revenue Cost of goods sold. Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Share in profit of associate Income before tax 260,000 Income tax expense. ( 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales. Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288
Transcribed Image Text:Problem 10-15 (IFRS) Dasy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 1,800,000 (1,200,000) Revenue Cost of goods sold. Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Share in profit of associate Income before tax 260,000 Income tax expense. ( 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales. Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288
The cost of goods sold, distribution cost, administrative expenses and finance cost can be allocated as 50% to furniture, 25% to stationery, 20% to computer products, and 5% to other segments. The cost of sales related to intersegment sales amounted to P240,000, to be allocated as 50% to furniture, 40% to stationery, and 10% to computer products. The segment assets and liabilities are: Computer Furniture Stationery products Others Current assets 80,000 40,000 5,000 2,000 Property, plant and equipment Goodwill 3,000 300,000 60,000. 100,000 30,000 85,000 10,000 Total assets 440,000 170,000 100,000 5,000 1,000 Current liabilities Noncurrent liabilities 30,000 20,000 8,000 7,000 45,000 30,000 2,000 75,000 50,000 15,000 3,000 Total liabilities The remaining assets and liabilities are general corporate assets and liabilities identified with the entity as a whole. The other income and other expenses are not allocated to the operating segments as a measure of profit or loss. The chief operating decision maker does not allocate income tax expense to reportable segments as a measure of profit or loss. 1. Determine the profit or loss for all of the operating segments. Required: 3. Prepare the necessary reconciliations between the segment information and amounts shown in the entity's financial statements. 2. Prepare the disclosures required for operating segments. 289
Transcribed Image Text:The cost of goods sold, distribution cost, administrative expenses and finance cost can be allocated as 50% to furniture, 25% to stationery, 20% to computer products, and 5% to other segments. The cost of sales related to intersegment sales amounted to P240,000, to be allocated as 50% to furniture, 40% to stationery, and 10% to computer products. The segment assets and liabilities are: Computer Furniture Stationery products Others Current assets 80,000 40,000 5,000 2,000 Property, plant and equipment Goodwill 3,000 300,000 60,000. 100,000 30,000 85,000 10,000 Total assets 440,000 170,000 100,000 5,000 1,000 Current liabilities Noncurrent liabilities 30,000 20,000 8,000 7,000 45,000 30,000 2,000 75,000 50,000 15,000 3,000 Total liabilities The remaining assets and liabilities are general corporate assets and liabilities identified with the entity as a whole. The other income and other expenses are not allocated to the operating segments as a measure of profit or loss. The chief operating decision maker does not allocate income tax expense to reportable segments as a measure of profit or loss. 1. Determine the profit or loss for all of the operating segments. Required: 3. Prepare the necessary reconciliations between the segment information and amounts shown in the entity's financial statements. 2. Prepare the disclosures required for operating segments. 289
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