1. An operating segment is a reporting segment if it passes the revenue test of
ID: 2537605 • Letter: 1
Question
1. An operating segment is a reporting segment if it passes
the revenue test of 10% or more of combined revenues.
the profit test of 10% or more of combined profits.
the asset test of 10% or more of combined assets.
any one of these tests.
2. Which of the following is true of the financial reporting of a company with subsidiaries or reportable segments?
The company must prepare consolidated statements.
The company must provide disaggregated information about its operating segments.
The company must show reconciliations of total revenues, total profit or loss, and total assets of reportable segments to corresponding consolidated totals.
all of these choices are true.
3. The SEC requires registrants to file interim reports on a
weekly basis.
monthly basis.
quarterly basis.
annual basis.
Explanation / Answer
1.) As per IFRS 8 An entity must report separately information about an operating segment that meets any of the following quantitative thresholds:
1. its reported revenue, including external sales and intersegment sales is 10% or more of the combined internal and external revenue of all operating segments.
2. its reported profit or loss is 10% or more of the greater of
a. the combined profit of all segments that did not report a loss, and
b. the combined reporting loss of all segments that reported a loss
c. its assets are 10% or more of the combined assets of all operating segments
2.) All of the choices are true.
3.) The SEC requires registrants to file the interim reports on a Qurterly basis.
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