Reporting Segment

Question 1

In order to conform with US GAAP and IFRS, financial statements for public business enterprises must report information about a company’s?

Answer 1

Operating segments, products and services, geographic areas, and major customers

Question 2

Are intercompany transactions eliminated for reporting?

Answer 2

No

Question 3

What companies does segment reporting apply to?

Answer 3

Public companies

Question 4

Are corporate headquarters and pension plans considered to be operating segments?

Answer 4

No

Question 5

What are operating segments of an enterprise that meet the criteria for separate reporting?

Answer 5

Reportable segments

Question 6

What are the 2 quantitative thresholds for reportable segments?

Answer 6

10% size test and 75% reporting sufficiency test

Question 7

Other business activities and operating segments that are not reportable based on the criteria should be?

Answer 7

Combined and disclosed in an “all other segments” category

Question 8

What is the formula for operating profit(or loss) for segment profit?

Answer 8

Revenues - Directly traceable costs - Reasonably allocated costs

Question 9

What are the 3 factors that are tested in the 10% test?

Answer 9

Revenue, reported profit or loss, and assets