Segment Reporting

Question 1

For whom is Segment Reporting required?

Answer 1

Publicly traded companies

Question 2

What factors cause a segment to be significant and therefore to be reported separately?

Answer 2

“Revenue of segment is 10% or more of total

Profit is 10% or more of total

Segment assets are 10% or more of total

75% Test - All segment revenues must equal 75% of total external revenues”

Question 3

What is the disclosure requirement regarding sales of 10% or more for one customer?

Answer 3

If 10% or more of enterprise revenue comes from one customer - the segment making the sales must be disclosed