Unit 8: Operating Segments

Question 1

[T/F] An operating segment may engage in business for wc it has to earn revenue. Hence, start-up operations may be one prior to earning revenue.

Answer 1

True.

Question 2

The _______ is used in identifying operating segments. This means that the segments are identified based on the components of the entity that are considered to be important for internal management reporting purposes.

Answer 2

management approach

Question 3

[T/F] IFRS 8 (Operating Segments) shall apply to the separate or individual FS of an entity, and to the consolidated FS of a group with a parent:

a) whose debt or equity instruments are traded in a public market.
b) that files, or is in the process of filing, the consolidated FS with a securities commission for the purpose of issuing any class of instruments in a public market.

Answer 3

True.

Question 4

[T/F] If a financial report contains both the consolidated FS of a parent and their separate FS, segment information is required only in the consolidated FS.

Answer 4

True.