Question 1

Examples of segment assets may include:

Accepted Answer

A)  Intangible assets. 
B)  Assets that are the subject of finance leases. 
C)  Deferred income tax assets. 
D)  Intangible assets and assets that are the subject of finance lease. 
E)  All of the given answers. 
A)  Intangible assets. 
B)  Assets that are the subject of finance leases. 
C)  Deferred income tax assets. 
D)  Intangible assets and assets that are the subject of finance lease. 
E)  All of the given answers.

Question 2

The guidelines to determine that a segment is reportable in accordance with AASB 8 "Operating Segments" includes:

Accepted Answer

A)  The segment's assets are equal to or greater than 10 per cent of the entity's total assets. 
B)  The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses. 
C)  The segment's assets are 10 per cent or more of the combined assets of all operating segments. 
D)  The expenses of the segment that relate to external and internal sales are equal to or greater than 10 per cent of total segment expenses. 
E)  None of the given answers. 
A)  The segment's assets are equal to or greater than 10 per cent of the entity's total assets. 
B)  The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses. 
C)  The segment's assets are 10 per cent or more of the combined assets of all operating segments. 
D)  The expenses of the segment that relate to external and internal sales are equal to or greater than 10 per cent of total segment expenses. 
E)  None of the given answers.

Question 3

A geographical segment is defined in part by AASB 8 as being a distinguishable component of an entity engaged in providing products and services within a particular social and cultural environment:

Accepted Answer

A) True 
 B)False

Question 4

Segment information may be useful to investors who wish to use ethical guidelines about which industries or countries they invest in:

Accepted Answer

A) True 
 B)False

Question 5

For a segment to be reportable AASB 8 requires that majority of revenues be earned from external parties and the segment satisfies one of the three quantitative thresholds:

Accepted Answer

A) True 
 B)False

Question 6

Potential costs of providing segment information include:

Accepted Answer

A)  Management taking extra risks in order to attempt to generate increased returns in its segment. 
B)  Allowing current or potential investors to identify that the entity is earning high profits in a segment. 
C)  Disclosing that a segment is making a loss. This may lead to take-over bids by other organisations. 
D)  Allowing current or potential competitors to identify that the entity is earning high profits in a segment. This may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success. 
E)  All of the given answers. 
A)  Management taking extra risks in order to attempt to generate increased returns in its segment. 
B)  Allowing current or potential investors to identify that the entity is earning high profits in a segment. 
C)  Disclosing that a segment is making a loss. This may lead to take-over bids by other organisations. 
D)  Allowing current or potential competitors to identify that the entity is earning high profits in a segment. This may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success. 
E)  All of the given answers.

Question 7

According to AASB 114,factors to be considered in aggregating operating segments include:

Accepted Answer

A)  A similar production process. 
B)  Exchange control regulations. 
C)  A common communications network. 
D)  A similar regulatory environment. 
E)  None of the given answers. 
A)  A similar production process. 
B)  Exchange control regulations. 
C)  A common communications network. 
D)  A similar regulatory environment. 
E)  None of the given answers.

Question 8

Which operating segments are considered to be reportable under AASB 8 using the segment revenue qualitative threshold?

Accepted Answer

A)  All segments are reportable. 
B)  Retail and agriculture. 
C)  Retail, agriculture and brewing 
D)  Retail, agriculture and chemicals 
E)  None of the given answers 
A)  All segments are reportable. 
B)  Retail and agriculture. 
C)  Retail, agriculture and brewing 
D)  Retail, agriculture and chemicals 
E)  None of the given answers

Question 9

IAS 8 was issued as part of the ongoing process to converge IAS standards with US Accounting Standards:

Accepted Answer

A) True 
 B)False

Question 10

The guidelines to determine that a segment is reportable in accordance with AASB 8 "Operating Segments" includes:

Accepted Answer

A)  Segment's reported revenue, including external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments; 
B)  Segment's reported profit or loss is 10 per cent or more of the greater, in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss; 
C)  Segment's assets are 10 per cent or more of the combined assets of all operating segments. 
D)  Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to users of the financial statements. 
E)  All of the given answers. 
A)  Segment's reported revenue, including external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments; 
B)  Segment's reported profit or loss is 10 per cent or more of the greater, in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss; 
C)  Segment's assets are 10 per cent or more of the combined assets of all operating segments. 
D)  Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to users of the financial statements. 
E)  All of the given answers.

Question 11

Research has shown that companies only provide segment information when it is required by accounting regulation:

Accepted Answer

A) True 
 B)False

Question 12

The following segment information relates to Tolkein Enterprises:   Applying the tests for identifying a reportable segment in accordance with AASB 8,which of the above segments qualify for reporting and do the segments satisfy the 75 per cent test?

Accepted Answer

A)  Reportable segments: Mechanical engineering and retailing, 75 per cent test satisfied. No 
B)  Reportable segments: Industrial manufacturing, mechanical engineering and retailing; 75 per cent test satisfied. Yes 
C)  Reportable segments: Project consulting, mechanical engineering and retailing; 75 per cent test satisfied. Yes 
D)  Reportable segments: Industrial manufacturing, project consulting, mechanical engineering and retailing; 75 per cent test satisfied. No 
E)  None of the given answers. 
A)  Reportable segments: Mechanical engineering and retailing, 75 per cent test satisfied. No 
B)  Reportable segments: Industrial manufacturing, mechanical engineering and retailing; 75 per cent test satisfied. Yes 
C)  Reportable segments: Project consulting, mechanical engineering and retailing; 75 per cent test satisfied. Yes 
D)  Reportable segments: Industrial manufacturing, project consulting, mechanical engineering and retailing; 75 per cent test satisfied. No 
E)  None of the given answers.

Question 13

In AASB 8 "Operating Segments",which of the following is not a consideration in determining the operating segments of an entity?

Accepted Answer

A)  Business activities from which an entity may earn revenues and incur expenses; 
B)  Component of an entity whose operating results are regularly reviewed by the entity's chief operating decision maker; 
C)  The entity's distribution and supply chain management system; 
D)  Component of an entity where discrete financial information is available; 
E)  None of the given answers. 
A)  Business activities from which an entity may earn revenues and incur expenses; 
B)  Component of an entity whose operating results are regularly reviewed by the entity's chief operating decision maker; 
C)  The entity's distribution and supply chain management system; 
D)  Component of an entity where discrete financial information is available; 
E)  None of the given answers.

Question 14

A business segment is defined by AASB 8 as:

Accepted Answer

A)  A component of an entity that is of separable and identifiable interest to a section of stakeholders of the entity. 
B)  A distinguishable component of an entity and that component is engaged in providing an individual product or service or group of related products or services and is subject to risks and returns that are different from those of other distinguishable components of the entity. 
C)  An identifiable component of an entity that is engaged in providing an individual product or service to other entities within the group and is subject to special risks and returns as a result of relying on other components of the entity. 
D)  An identifiable component of an entity based on functional relationships with suppliers or customers or financiers established over a period of time. 
E)  None of the given answers. 
A)  A component of an entity that is of separable and identifiable interest to a section of stakeholders of the entity. 
B)  A distinguishable component of an entity and that component is engaged in providing an individual product or service or group of related products or services and is subject to risks and returns that are different from those of other distinguishable components of the entity. 
C)  An identifiable component of an entity that is engaged in providing an individual product or service to other entities within the group and is subject to special risks and returns as a result of relying on other components of the entity. 
D)  An identifiable component of an entity based on functional relationships with suppliers or customers or financiers established over a period of time. 
E)  None of the given answers.

Question 15

AASB 8 allows reportable segments to be combined as a single reportable business or geographical segment if: (a)they exhibit similar long-term financial performance; and (b)they are similar in all of the appropriate factors identified in the Standard in relation to segment revenues,expenses,assets and liabilities:

Accepted Answer

A) True 
 B)False

Question 16

Segment revenues as not including:

Accepted Answer

A)  Interest earned on loans to other segments. 
B)  Interest or dividend income, unless the segment's operations are primarily of a financial nature. 
C)  Joint venturer's revenues from its share of joint venture operations. 
D)  Interest earned on loans to other segments and interest or dividend income, unless the segment's operations are primarily of a financial nature. 
E)  All of the given answers. 
A)  Interest earned on loans to other segments. 
B)  Interest or dividend income, unless the segment's operations are primarily of a financial nature. 
C)  Joint venturer's revenues from its share of joint venture operations. 
D)  Interest earned on loans to other segments and interest or dividend income, unless the segment's operations are primarily of a financial nature. 
E)  All of the given answers.

Question 17

Where the entity's primary format for reporting segments is geographical then disclosures in addition to those required when the primary format is business segments are required.These disclosures depend on:

Accepted Answer

A)  Whether the segments are business segments or geographical segments. 
B)  The relative size of the assets invested in geographical segments. 
C)  The accounting policies applied to calculating the revenues, expenses, assets and liabilities of the segments. 
D)  Whether the segments are based on the location of assets or location of customers. 
E)  None of the given answers. 
A)  Whether the segments are business segments or geographical segments. 
B)  The relative size of the assets invested in geographical segments. 
C)  The accounting policies applied to calculating the revenues, expenses, assets and liabilities of the segments. 
D)  Whether the segments are based on the location of assets or location of customers. 
E)  None of the given answers.

Question 18

In accordance with AASB 8"Operating Segments",which of the following statements is incorrect?

Accepted Answer

A)  The standard requires an entity to report financial and descriptive information about its reportable segments. 
B)  Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. 
C)  The standard requires an entity to report a measure of operating segment profit or loss and of segment assets. 
D)  Reportable segments exclude business activities for which it has yet to earn revenues (e.g. start-up operations). 
E)  None of the given answers 
A)  The standard requires an entity to report financial and descriptive information about its reportable segments. 
B)  Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. 
C)  The standard requires an entity to report a measure of operating segment profit or loss and of segment assets. 
D)  Reportable segments exclude business activities for which it has yet to earn revenues (e.g. start-up operations). 
E)  None of the given answers

Question 19

The following information relates to Sam Ltd and its Eomersegment.   In accordance with AASB 8 "Operating Segment",in which years is the Eomer segment a reportable segment?

Accepted Answer

A)  2011, 2012 and 2013; 
B)  2011, 2014 and 2015; 
C)  2011 and 2014; 
D)  2012 and 2013; 
E)  2014 and 2015; 
A)  2011, 2012 and 2013; 
B)  2011, 2014 and 2015; 
C)  2011 and 2014; 
D)  2012 and 2013; 
E)  2014 and 2015;

Question 20

According to AASB 8,"where total external revenues attributable to reportable segments constitute less than 75 per cent of the entity's total revenues"...

Accepted Answer

A)  additional reportable segments must be identified in accordance with the definition of reportable segments, until at least 75 per cent of the entity's total revenues are included in reportable segments. 
B)  the entity reports those segments already identified as reportable, even though they constitute less than 75 per cent of the entity's total revenues. 
C)  additional segments must be identified as reportable segments, even if they do not qualify as reportable segments, until at least 75 per cent of the entity's total revenues are included in reportable segments. 
D)  the entity considers whether total external revenues attributable to reportable segments constitute greater than 75 per cent of the entity's total external revenues, and if so, report those segments already identified. 
E)  the entity considers whether total assets of the reportable segments constitute greater than 75 per cent of the entity's total assets, and if so, report those segments already identified. 
A)  additional reportable segments must be identified in accordance with the definition of reportable segments, until at least 75 per cent of the entity's total revenues are included in reportable segments. 
B)  the entity reports those segments already identified as reportable, even though they constitute less than 75 per cent of the entity's total revenues. 
C)  additional segments must be identified as reportable segments, even if they do not qualify as reportable segments, until at least 75 per cent of the entity's total revenues are included in reportable segments. 
D)  the entity considers whether total external revenues attributable to reportable segments constitute greater than 75 per cent of the entity's total external revenues, and if so, report those segments already identified. 
E)  the entity considers whether total assets of the reportable segments constitute greater than 75 per cent of the entity's total assets, and if so, report those segments already identified.

Exam 25: Segment Reporting

Examples of segment assets may include:

The guidelines to determine that a segment is reportable in accordance with AASB 8 "Operating Segments" includes:

A geographical segment is defined in part by AASB 8 as being a distinguishable component of an entity engaged in providing products and services within a particular social and cultural environment:

Segment information may be useful to investors who wish to use ethical guidelines about which industries or countries they invest in:

For a segment to be reportable AASB 8 requires that majority of revenues be earned from external parties and the segment satisfies one of the three quantitative thresholds:

Potential costs of providing segment information include:

According to AASB 114,factors to be considered in aggregating operating segments include:

Which operating segments are considered to be reportable under AASB 8 using the segment revenue qualitative threshold?

IAS 8 was issued as part of the ongoing process to converge IAS standards with US Accounting Standards:

The guidelines to determine that a segment is reportable in accordance with AASB 8 "Operating Segments" includes:

Research has shown that companies only provide segment information when it is required by accounting regulation:

The following segment information relates to Tolkein Enterprises: Applying the tests for identifying a reportable segment in accordance with AASB 8,which of the above segments qualify for reporting and do the segments satisfy the 75 per cent test?

In AASB 8 "Operating Segments",which of the following is not a consideration in determining the operating segments of an entity?

A business segment is defined by AASB 8 as:

Segment revenues as not including:

Where the entity's primary format for reporting segments is geographical then disclosures in addition to those required when the primary format is business segments are required.These disclosures depend on:

In accordance with AASB 8"Operating Segments",which of the following statements is incorrect?

The following information relates to Sam Ltd and its Eomersegment. In accordance with AASB 8 "Operating Segment",in which years is the Eomer segment a reportable segment?

According to AASB 8,"where total external revenues attributable to reportable segments constitute less than 75 per cent of the entity's total revenues"...

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financ

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluation and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Lease

Set-Off and Extinguishment of Debt

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in E

Accounting for Share-Based Payments

Accounting for Income Taxes

Cash-Flow Statements

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After Balance Sheet Date

Related-Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transact

Further Consolidation Issues II: Accounting for Minority Interests

Further Consolidation Issues III: Accounting for Indirect Ownershi

Further Consolidation Issues Iv: Accounting for Changes in the Deg

Accounting for Equity Investments

Accounting for Equity Investments

Accounting for Foreign Currency Transactions

Translation of the Accounts of Foreign Operations

Accounting for Corporate Social Responsibility

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