IFRS 8

Question 1

Operating segment

Answer 1

That engages in business activities from which it may earn revenues and incur expenses

Operating results regularly reviewed by entity’s chief operating decision maker to make decisions about resource allocation and assessing performance

For which discrete financial information is available

Question 2

Tests for operating segment

Answer 2

A) it’s reported revenue from internal and external customers is 10% or more of the combined revenue of all operating segments

B) the absolute measure of its reported profit or loss is 10% or more of the greater of

i) the combined profit of all operating segments that did not report a loss
ii) and the combined reported loss of all operating segments that reported a loss

C) it’s assets are 10% or more of the combined assets of all operating segments

Final- if total revenue of segment is less than 75% of company’s consolidated revenue

Question 3

Tests for operating segment

Answer 3

A) it’s reported revenue from internal and external customers is 10% or more of the combined revenue of all operating segments

B) the absolute measure of its reported profit or loss is 10% or more of the greater of

i) the combined profit of all operating segments that did not report a loss
ii) and the combined reported loss of all operating segments that reported a loss

C) it’s assets are 10% or more of the combined assets of all operating segments

Final- if total revenue of segment is less than 75% of company’s consolidated revenue