SEGMENT REPORTING

Segment reporting shall apply to

• Separate financial sta tements of an entity only.

• Consolidated financial statements of a group only.

• Both the separate financial statements of an entity and the consolidated financial statements of a group

• Neither the separate financial statements of an entity nor the consolidated financial statements of a group

If a financial report contains both the consolidated financial statements of a parent and the parents separate financial statements, segment information is required in

• The separate financial statements only

• The consolidated financial statements only

• Both the separate and consolidated financial statements

• Neither the separate nor the consolidated financial statements

An operating segment is a component of an entity

• That engages in business activities from which it may earn revenue and incur expenses

• Whose operating results are regularly reviewed by the entity's chief operating decision maker

• For which discrete information is available

• All of these characterize an operating segment

Which quantitative threshold is not a requirement in qualifying a reportable segment?

• The segment revenue, both external and internal, is 10% or more of the conbined external and internal revenue of all operating segments.

• The segment profit or loss is 10% or more of the greater between the combined proft of profitable segments and combined loss of unproftable segments.

• The segment assets are 10% or more of the combined assets of all operating segments.

• The segment assets are 20% or more of the combine assets of all operating segments.

Which statement is true concerning the 75% overall size test for reportable segments?

• The total external and internal revenue of all

  reportable segments is 75% or more of the entity's external revenue.

• The total external revenue of all reportable segments is 75% or more of the entity's external and internal revenue.

• The total external revenue of all reportable segments is 75% or more of the entity's external revenue.

• The total internal revenue of all reportable segments is 75% or more of the enilty's internal revenue.

The term chief operating decision maker

• Refers to a manager with a specific title.

• Must be disclosed by title in the financial reporting for segments.

• Must be described in the disclosures for the financial reporting for segments.

• Refers to a function of allocating resources to the operating segmnents and assessing their performance.

Which statement is not true with respect to a chief operating decision maker?

• The term chief operating decision maker identifies a function and not necessarily a manager with a specific title.

• In some cases, the chief operating decision maker could be the chief operating officer.

• The board of directors acting collectively could qualify as the chief operating decision maker.

• The chief internal auditor would generally qualify as chief operating decision maker.

In financial reporting for operating segments, an entity shall disclose all of the following, except

• Type of product and service from which each reportable segment derives revenue.

• The title of the chief operating decision maker.

• Factors used to identify the reportable segments.

• The basis of measurement of segment profit or loss and segment assets.

Two or more operating segments may be aggregated into a single operating segment if all of the following conditions are satisfied, except

• The segments have similar characteristics.

• The segments share a majority of the nature of product or service, nature of production process, class of, customer, method of product distribution and regulatory environment.

• The aggregation is consistent with the core principle of segment reporting.

• The segments have dissimilar characteristics

Operating segments that do not meet any of the quantitative thresholds

• Cannot be considered reportable.

• May be considered reportable and separately disclosed if management believes that information about the segment would be useful to the users of the financial

  statements.

• May be considered reportable and separately disclosed if the information is for internal use.

• May be considered reportable and separately disclosed if this is the practice within the economic environment in which the entity operates