Operating Segment

Question 1

What is PFRS 8?

Answer 1

Operating Segment

Question 2

This is the disclosure of certain financial information about the products and services an entity produces and the geographical areas in which an entity operates.

Answer 2

Segment reporting

Question 3

To which kind of FS does PFRS apply to?

Answer 3

Individual and Consolidated

Question 4

What kind of parent company is referred to in the group having consolidated financial statements?

Answer 4

Whose debt or equity instruments are traded in a public market

That files or is filing the consolidated financial statements for the purpose of issuing instruments in a public market

Question 5

If a financial report contains both the consolidated financial statements of a parent and the parent’s separate financial statements, segment information is required only in?

Answer 5

The consolidated financial statements

Question 6

What are the 3 characteristics of an operating segment?

Answer 6

1. engages in business activities that earn revenue and incur expenses
2. whose operating results are regularly viewed by the entity’s chief operating decision maker
3. for which discrete financial information is available

Question 7

An operating segment can generally be thought of as a ___________ component of an entity that is engaged in business activities which generate revenue and incur expenses.

Answer 7

Distinguishable

Question 8

When is a component classified as an operating segment?

Answer 8

1. separate financial information must be available about the segment
2. its operating results must be regularly reviewed by a CODM

Question 9

True or False: An operating segment may engage in business activities for which it has YET to earn revenue.

Answer 9

True

Question 10

True or False: Every part of an entity is considered an operating segment.

Answer 10

False

Question 11

This is a function used to allocate resources to the segments and assess their performance.

Answer 11

Chief operating decision maker

Question 12

Who can be the CODM?

Answer 12

CEO
COO
Executive directors
or kahit sino pasta responsible for the allocation of resources sha

Question 13

What approach is used in identifying operating segments?

Answer 13

Management approach

Question 14

This means that the operating segments are identified on the basis of internal reports about components of an entity that are regularly reviewed by the CODM in order to allocate resources.

Answer 14

Management approach

Question 15

Operating segments are important for what management?

Answer 15

Internal

Question 16

IFRS had abandoned which approach of ______ in identifying operating by business segments and geographical segments.

Answer 16

risk and reward approach

Question 17

What are the thresholds in determining reportable segments?

Answer 17

281

Question 18

Are segments that do not qualify with any of the thresholds still eb reportable?

Answer 18

Yes on a voluntary basis if the management deem it proper and necessary

Question 19

If the total revenue of reportable operating segments constitutes less than how many percent of entity external revenue, additional segments shall be identified as reportable.

Answer 19

75%

Question 20

What are the 5 criteria in aggregating segments?

Answer 20

283

Question 21

What is the prescribed limit of segments deemed to be practical without the information being too detailed?

Answer 21

10

Question 22

If the management judges that an operating segment identified as a reportable segment in the immediately preceding period is of continuing significant, should the information about the segment be reported separately in the current period even if it no longer meets any of the 10% thresholds?

Answer 22

Yes

Question 23

Should segment data for a prior period presented for comparative purposes be restated to reflect the newly reportable segment even if that segment did not satisfy any of the thresholds?

Answer 23

Yes

Question 24

What are the information to be disclosed for each segment?

Answer 24

1. General information
2. Information about profit or loss
3. Segment asses and liabilities and the basis of measurement
4. Reconciliations of the totals of segment revenue, profit or loss, assets, and liabilities

Question 25

The general information disclosure requirement on segments includes?

Answer 25

1. Factors used to identify the reportable segments 2. Type of products and services from which revenue is derived

Question 26

This is a single external customer providing revenue which amounts to 10% or more of an entity's external revenue.

Answer 26

Major customer

Question 27

What should be disclosed about the major customers of segments?

Answer 27

1. fact of reliance on these major customers 2. total revenue derived from them 3. the segments reporting these revenue from major customers

Question 28

True or False: The entity is required to disclose the identity of major customer or the amount of revenue that each segment reports from that customer.

Answer 28

False

Question 29

These are additional information required to be disclosed by all entities if such information is not provided as part of the reportable segment information.

Answer 29

Entity-wide disclosures

Question 30

What are the required entity-wide disclosures?

Answer 30

Information on 1. products and services 2. major customers 3. geographical areas

Question 31

True or False: If an entity changes the structure of the internal organization in a manner that causes the composition of the reportable segments to change, the corresponding information for earlier periods, including interim periods, SHALL BE RESTATED.

Answer 31

True

Question 32

When is restatement not made?

Answer 32

If the cost would be excessive or info on earlier periods is not available