F2 - M5 - Segment Reporting

Question 1

In order to conform to U.S. GAAP and IFRS, financial statements for public business entities must report information about ______________(4)

Answer 1

1) a company’s operating segments, 2) products and services, 3) geographic areas, and 4) major customers.

Question 2

A reportable segment exists if it meets one of three quantitative tests: (3)

Answer 2

1) Ten percent of combined revenues to internal and external parties., 2) Ten percent of the greater of reported profit or loss (as an absolute amount). 3) Ten percent of the combined assets of all operation segments.

Question 3

is a disclosure of segment liabilities for IFRS required?

Answer 3

Yes

Question 4

is a disclosure of segment liabilities required for GAAP?

Answer 4

No

Question 5

When is an operating segment 2 component of an entity?

Answer 5

1) engages in business activities, 2) operating results are regularly review by entity’s chief decision maker 3) traceable cash flows

Question 6

The “____ percent reporting sufficiency test” is a “catchall” requirement that may require identification of additional segments to attain the _____ percent level

Answer 6

75%, 75%

Question 7

__________ is segment revenues from sales to internal and external customers less directly traceable costs and also less reasonably allocated costs equals segment operating profit (loss).

Answer 7

Operating Profit

Question 8

Under U.S. GAAP, entities must disclose _______ for segment

Answer 8

disclose segment profit or loss, segment assets, and certain other related items.

Question 9

Under IFRS, entities must disclose _____________ (4)

Answer 9

1) segment profit or loss, 2) segment assets, 3) segment liabilities (if such a measure is provided to the chief operating decision maker), and 4) certain related items.

Question 10

The 75% reporting sufficient test, if the total of the > 10% segment all together do not equal ____ of revenue, must break out other segments

Answer 10

75%

Question 11

A _________ customer is an entity that generates 10% or more of its revenue from sales to a single customer must disclose the fact, the revenue and identity

Answer 11

Major customer

Question 12

In case of declines in inventory values at interim dates that are expected to be recovered by year-end, inventory should not be written down until __________

Answer 12

The end of the year (4th Quarter only)

Question 13

For interim reporting, impairment should be written down as in the quarter ____________

Answer 13

its not expected to be recovered

Question 14

__________ are required to report on business segments.

Answer 14

Public business enterprises

Question 15

Earnings per share disclosure is required to be used by:

Answer 15

Companies whose shares and potential shares are publicly traded.

Question 16

Discontinued operations should be included in the determination of net income for the ______ in which they occur.

Answer 16

interim period in which they occur.

Question 17

Discontinued operations should not be prorated among ________

Answer 17

interim periods.

Question 18

_________ should not be prorated among Interim periods.

Answer 18

Discontinued operations

Question 19

An enterprise is required to report a measure of segment profit or loss, segment assets and certain related items, but not segment _______ or ___________.

Answer 19

cash flow or segment liabilities

Question 20

A reportable segment’s assets must be ____ percent or more of the combined assets of all operating segments.

Answer 20

10

Question 21

Operating segments have three characteristics (3)

Answer 21

1) It engages in business activities from which it may earn revenues and incur expenses.
2) Its operating results are regularly reviewed by the entity’s chief operating decision-maker.
3) Its discrete financial information is available.

Question 22

For interim reporting only, you may use __________ to estimate cost of goods sold; it is not permitted for annual, year-end reporting.

Answer 22

gross profit rates

Question 23

Previously all companies are required to file material contracts that were entered within past two years before registration but with applicable changes as per the FAST act Modernization and Simplification of Regulation S-K only ____________ would be required to file material contracts that were entered within past ____ years before registration/filing with SEC.

Answer 23

newly reporting companies ; two

Question 24

EDGAR is intended to benefit electronic filers, enhance the speed and efficiency of SEC process, and readily make financial information available to users.

Answer 24

EDGAR

Question 25

EDGAR stands for

Answer 25

Electronic Data Gathering, Analysis and Retrieval System