Chapter 12

Question 1

If question got say
‘listed”

Answer 1

Need to present segment reporting

Question 2

Steps for recognise operating segment and reportable segment

Answer 2

• Step 1: see is it operating segment
• Step 2: then see can meet 10% or not

Question 3

Criterias of operating segments

Answer 3

should all meet the criterias:

• that engages in business activity that earns revenue and incur expenses (research & development also include)
• operating results are regularly reviewed by CODM (Chief Operating Decision-Maker) for resource allocation decisions and assess performance
• for which separate/discrete financial information is avalaible

Question 4

Reportable segments

Answer 4

Revenue: If segment meet 10% rule, then need to diclose, exp: 10% of total revenue (12490*10% = 1249), exceed 1249 revenue then disclose

If external revenue (activity 1), selected reportable item/total is > 75% then need to disclose on reportable segment, if no then add other segment together to exceed 75%

P&L: compare total profit and total loss which ever is higher, exp: profit is higher then choose profit x 10% = xxx, then disclose items which exceed xxx (report it on f/s)

Assets: total asset x 10%

Any operating segment fulfill any criteria 10% then can disclose already

Question 5

Aggregation

Answer 5

类似就合起来，不类似就分开
Operating segment can be combined if they have similar economic characterics

Question 6

Related party transaction

Answer 6

RPT (key management personnel) need to disclose these:
* The related party relationship
* The nature of the transaction
* The transaction amount during the year
* The amount outstanding as at year end

Government related party:
* name of governemnt
* nature of relationship
* significant transaction amount

If question say no disclose these, then say no comply this standard and say ethical issue: integrity questionable)

Question 7

Associate

Answer 7

• Hold 20% - 49% interest
• has significant influence over …
• has power to participate in decision making (at least 1 board representation/board director on the board of associate)

Question 8

Subsidiary

Answer 8

When an investor control another entity, the investor is having a subsidiary. Control is defined to include the following:

• Power over the investee;
• Exposure to variable return;
• Ability to use power to affect the return from investee.