F2 M5 Segment reporting

Question 1

Segment reporting

Answer 1

10% Revenue
10% Profit or loss (
10% Asset

Inter segment revenue/Profit or loss, Asset is considered while calculating 10%

Together 75% reported -Sufficiency test
Inter segment is not considered.

Calculation of Profit/loss
A-100
B-200
C-(-20)
10% of 300 not 280

Not 10% liability

Segment liability is disclosed in IFRS if reported to CEO decision maker

Segment cash flow is not disclosed in any case.

Identity of customer is not disclosed

Question 2

Who is required to report segment reporting

Answer 2

Publicly traded entity only.

No private, Non profit, Joint venture

Question 3

What should be reported for re portable segment

Answer 3

Profit & Asset

Question 4

What is not included in segment profit

Answer 4

Included 
Revenue-
Less: directly traceable cost
Less:related allocated cost
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Operating profit or loss

Not included 
1. equity in net income of other co.
2. General corporate expense
3. Interest
4. Income tax
5 Gain & loss from discontinued business
6 Minority interest

Unless they are reported to chief operating decision maker in determining segment profit

Question 5

Required disclosure

Answer 5

Operating segment
Product & Service
Geographic area
Major customer