M5 - Segment Reporting

Question 1

What is a reportable operating segment?

Answer 1

Having 10% of all revenue, including revenue from unaffiliated sales and from intersegment sales.

Question 2

True or False? Unaffiliated customer sales and intracompany sales must be disclosed separately.

Answer 2

True

Question 3

Interest expense, income taxes, gains or losses on discontinued operations, and general corporate expenses are not allocated to the divisions solely for the purposes of segment disclosures; they may be allocated if that is how the segments report to the “Chief Operating Decision Maker.” True or False?

Answer 3

True

Question 4

True or False: The identity of any external customer providing 10% or more of a particular operating segment’s revenue is a required enterprise-wide disclosure regarding external customers.

Answer 4

False, Revenue is 10% of ALL operating segments not “a particular” segment.

Question 5

Does Nonpublic business enterprises, not-for-profit enterprises, and joint ventures have to report on business segments?

Answer 5

No, only publicly-traded enterprises have to.

Question 6

Which is not disclosed for an entity’s reportable segments under IFRS?

a. Segment Liabilities
b. Segment Assets
c. Segment Cash Flow
d. Segment Profit or Loss

Answer 6

C. Segment cash flow is not reported under IFRS (or US GAAP)

D. Reported under both IFRS & GAAP
B. Reported under both IFRS & GAAP
A. Segment liabilities are reported for each reportable segment under IFRS, if such a measure is regularly provided to the chief operating decision maker. Segment liabilities are not reported under US GAAP.