F1 - Segment Reporting

Question 1

What test(s) must be met for a segment to be reportable?

Answer 1

10% size test:
Revenue
Reported Profit or Loss (greater of absolute profit or loss)
Assets

75% test:
Keep reporting until 75% of all consolidated revenue is accounted for in reported segments

Question 2

To whom must the segment report (internally) in order to be reported separately?

Answer 2

The “Chief Operating Decision Maker”

Question 3

What type of entities are required to use segment reporting?

Answer 3

Publicly traded companies

Question 4

What information should a public company present about revenues from its reporting segments?

Answer 4

Disclose unaffiliated and intracompany sales separately

Question 5

What should be excluded in computing segment profit or loss?

Answer 5

Any general expenses, interest expenses, taxes, extraordinary items; basically anything general or out of the ordinary