Segment Reporting (F2:M5)

Question 1

when is a segment considered “reportable”?

Answer 1

segment must be at least 10% of:

combined rev. (whether intersegment or unaffiliated customers)
OR
operating profit (of all segments not having an operating loss)
OR
identifiable assets

Question 2

T or F, unaffiliated customers sales and intracompany sales must be disclosed separately.

Answer 2

T

Question 3

what is the formula for calculating segment profit (or loss)?

Answer 3

revenues
(directly traceable costs)
(reasonably allocated costs)*
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
*income and expenses are not allocated to a segment unless they are included in the determination of segment profit or loss reported to the chief operating decision maker

Question 4

what does IFRS require that GAAP doesn’t?

Answer 4

disclosure of segment liabilities if such a measure is regularly provided to the chief operating decision maker