Operating Segments Flashcards
Disaggregated information can give additional insights about the business activities
that an entity undertakes.
True
The identity of the major customer is not required to be disclosed.
False
The amount of revenues that each segment reports from major customer is
required to be disclosed.
True
At least two of the quantitative thresholds shall be met for an operating segment to
be considered as reportable.
False, only one
Intersegment sales are considered in determining the amount of the revenue
threshold.
True
If all of the operating segments reported losses, none of them cannot be considered
as reportable segments.
False
If some of the operating segments reported profit, while other operating segments
reported loss, and the total amount of profit is higher than the total amount of loss,
the reportable segments who reported losses are disqualified to be a reportable
segment.
False, use the threshold of profit instead
After identifying the reportable segments, their total external revenues shall be at
least 75% of the total external revenues of the entity.
True
There is a practical limit of ten reportable segments that shall be disclosed in the
financial statements.
True
The quantitative thresholds in identifying operating segments include revenues,
profit or loss, expenses, and assets.
False, expenses not included
All of the aggregation criteria shall be met for two or more operating segments to
be combined before the identification of reportable segments.
False, majority 3 out of 5
Corporate headquarters cannot be considered as an operating segment.
True
A start-up operation can be considered as operating segment only from the time it
actually earns income.
False, pwede even before
Chief operating decision maker is a specific title within an entity.
False
In the Philippine setting, all entities are required to disclose reportable segments in
their financial statements.
False, PSE and issue bonds to the general public
