An operating segment is a component of an enterprise that engages in business activities from which it only earns revenues. B. The operating results of an operating segment are reviewed regularly by the corporate controller to assess performance. C. There is integral financial information available for each operating segment. D.
In determining reportable segments, three tests are applied and all three must be met. C. In determining reportable segments, two tests are applied and only one must be met. D. In determining reportable segments, three tests are applied and only one must be met. E.
The practical limit tot he number of operating segments is 10. B. Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year.
D. An operating segments assets are 10 percent or more of consolidated liabilities. E. An operating segment's assets are 10 percent or more of corporate assets. A. An operating segment's assets are 10 percent or more of combined segment assets. Which of the following operating segment disclosures is not required by U.S. GAAP?
In general, IFRS 8 has a management approach to identification of operating segments and its aim is to enable the users to see an entity through the eyes of management. It is sometimes the case that CODM regularly reviews information on different product lines and geographical regions at the same time.
An operating segment may engage in business activities for which it has yet to earn revenue. For example, start-up operations may be operating in segments before earning revenue. Not every part of an entity is necessarily operating segment or part of an operating segment.
A head office function that undertakes business activities (for example, a treasury operation that earns interest income and incurs expenses) may be an operating segment as long as its revenues earned are more than incidental to the activities of the entity, and discrete financial information is reviewed by the CODM.
similar economic characteristicsTwo or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of this IFRS, the segments have similar economic characteristics, and the segments are similar in each of the following respects: a. The nature of the products and services. b.
Overview. IFRS 8 Operating Segments requires particular classes of entities (essentially those with publicly traded securities) to disclose information about their operating segments, products and services, the geographical areas in which they operate, and their major customers.
Which of the following qualifies as a reportable segment? North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.
Which tests must a company use to determine which operating segments require separate disclosure? A. revenue test and asset test.
If operating segments have similar economic characteristics, then they can be aggregated into a single reportable segment and viewed together for the purposes of the size criteria. If management reporting is prepared on a geographical basis, the same criteria for aggregation apply.
Disclosure requirements of IFRS 7. The two main categories of disclosures required by IFRS 7 are: information about the significance of financial instruments. information about the nature and extent of risks arising from financial instruments.
If primary format of an enterprise for reporting segment information is geographical segments that are based on location of assets, and if the location of its customers is different from the location of its assets, then the enterprise should also report revenue from sales to external customers for each customer-based ...
The information you should include in segment reporting includes the following items: The factors used to identify reportable segments. The types of products and services sold by each segment. The basis of organization (such as being organized around a geographic region, product line, and so forth)
Segment reporting breaks down the operations of a company into manageable pieces, or segments. Public companies must then record detailed financial statements for each operating segment. The goal is to increase transparency for creditors and investors, especially regarding the company's most important operating units.