PFRS 8 - Operating Segments Flashcards
PFRS 8 applies to the
- separate or individual financial statements of an entity
- Consolidated FS of a group with a parent
- That is publicly listed or in process of enlisting
If a financial report contains both consolidated and separate FS, segment information is required in
the consolidated FS only
Are non-publicly listed required to disclose segment information
No, they are not required to disclose
(T or F) Non-publicly listed can disclose segment information
True, if they choose to do, they will need to apply PFRS 8
An operating segment is
a component of an entity
- that engages in business activities from which it may earn revenues and incur expenses
- whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance
- for which discrete financial information is available
A component of an entity comprises
operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes
To qualify as an operating segment, one must be a
- Profit Center
- Used Internally by management for decision making
- Which separate financial information is available
A ______________ can be an operating segment even if it has yet to earn revenues
Start-up Operation
An operating segment is reportable if it:
- is used by management in internal reporting or results from aggregating two or more segments; and
- qualifies under then quantitative thresholds
PFRS 8 adopts a __________ to identifying reportable segments
management approach
The decision on whether an operating segment is reportable or not is based on
management’s judgment
Operating segment is reportable if it meets any of the following quantitative thresholds
- Its revenue, including external and intersegment sales, is 10% or more of the total revenue, external and internal, of all operating segments
- Its profit or loss is 10% or more of the greater, in absolute, of the total profit or loss of all operating segments that reported the respective revenue (if they reported profit, check all the operating segments that reported a profit only, vice-versa)
- Its assets are 10% or more of the total assets of all operating segments
Operating segments tat are not reportable are combined and disclosed in
an “all other segments” category
If the total external revenues of the identified reportable segments are less than 75% of the entity’s total external revenue, what should be done?
additional operating segments are reportable, even if they do not meet the quantitative threshold, until at least 75% of the entity’s external revenue is included in reportable segments
Additional reportable segments are identified based on
management’s judgment
Interest revenue and interest expense are
reported separately for each reportable segment unless the segment’s revenue is primarily from interest and internal decision-making is based on net interest revenue
An entity discloses the extent of its reliance on its
major customers
A major customer is a single external customer who has
provided 10% or more of the entity’s revenues
Does the entity need to disclose the identity of a major customer?
The entity need not disclose the identity of a major customer or the amount of revenues that each segment reports from that customer
