Question 1

Under Accounting Standard AASB8 Operating Segments segments are delineated on the basis of:

Accepted Answer

A)  industries of operation 
B)  differences in risk and return 
C)  the internal management and reporting structure 
D)  none of the above 
A)  industries of operation 
B)  differences in risk and return 
C)  the internal management and reporting structure 
D)  none of the above C

Question 2

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are intra-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

Accepted Answer

A)  Reduce the relevant segment result reported by the subsidiary. 
B)  Have no effect on the segment result reported by the subsidiary. 
C)  Reduce both the segment result reported by the subsidiary and reduce the consolidated profit of the group. 
D)  None of the above. 
A)  Reduce the relevant segment result reported by the subsidiary. 
B)  Have no effect on the segment result reported by the subsidiary. 
C)  Reduce both the segment result reported by the subsidiary and reduce the consolidated profit of the group. 
D)  None of the above. C

Question 3

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands):
  
-On revenue and asset criteria only,the reportable business segments are:

Accepted Answer

A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above. 
A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above. A

Question 4

How might management be able to conceal segment information under the 'management approach' to identifying reportable segments?

Accepted Answer

Concealing segment information under the

Question 5

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands):
  
-On revenue criteria only,the reportable business segments are:

Accepted Answer

A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skewbalds, Pintos, Crillos and Others. 
D)  None of the above. 
A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skewbalds, Pintos, Crillos and Others. 
D)  None of the above.

Question 6

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are inter-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

Accepted Answer

A)  Reduce the relevant segment result reported by the subsidiary. 
B)  Have no effect on the segment result reported by the subsidiary. 
C)  Reduce both the segment result reported by the subsidiary and reduce the consolidated profit of the group. 
D)  None of the above. 
A)  Reduce the relevant segment result reported by the subsidiary. 
B)  Have no effect on the segment result reported by the subsidiary. 
C)  Reduce both the segment result reported by the subsidiary and reduce the consolidated profit of the group. 
D)  None of the above.

Question 7

Where the total revenue derived by the reportable segments of a group from the provision of goods or services to external customers is less than 75% of the total group sales revenue:

Accepted Answer

A)  Other components of the business are identified as reportable segments until the 75% threshold is reached. 
B)  Other components are combined as a reportable segment until the 75% threshold is reached. 
C)  Other components are combined in segments in which the combined segment revenue derived from external sales is 10% or more of the total external sales until the 75% threshold is reached. 
D)  None of the above. 
A)  Other components of the business are identified as reportable segments until the 75% threshold is reached. 
B)  Other components are combined as a reportable segment until the 75% threshold is reached. 
C)  Other components are combined in segments in which the combined segment revenue derived from external sales is 10% or more of the total external sales until the 75% threshold is reached. 
D)  None of the above.

Question 8

The management approach to identifying segments will result in consistency between internal and external reporting of segment information.

Accepted Answer

A) True 
 B)False

Question 9

The major argument against supplying segment information is that it provides users with potentially competitively damaging information.

Accepted Answer

A) True 
 B)False

Question 10

Segment information must be disclosed:

Accepted Answer

A)  on the face of the financial statements 
B)  in a note to the financial statements 
C)  either A or B 
D)  none of the above 
A)  on the face of the financial statements 
B)  in a note to the financial statements 
C)  either A or B 
D)  none of the above

Question 11

A segment which does not meet any of the materiality thresholds in the current period can never be disclosed as a reportable segment.

Accepted Answer

A) True 
 B)False

Question 12

Under Accounting Standard AASB1039 Concise Financial Reports segment information is required to be presented:

Accepted Answer

A)  in the financial statements 
B)  in the notes to the financial statements 
C)  not required 
D)  none of the above 
A)  in the financial statements 
B)  in the notes to the financial statements 
C)  not required 
D)  none of the above

Question 13

In the reporting of segment revenue data:

Accepted Answer

A)  Intra-segment revenue is eliminated as part of the consolidation process so that only sales revenue derived from sales to external customers is reported. 
B)  An entity must disclose the segment revenue for each reportable segment although total intra-segment revenue may be disclosed as a lump sum for all segments. 
C)  An entity must disclose the segment revenue for each segment; with revenue from external customers and intra-segment revenue reported separately. 
D)  None of the above. 
A)  Intra-segment revenue is eliminated as part of the consolidation process so that only sales revenue derived from sales to external customers is reported. 
B)  An entity must disclose the segment revenue for each reportable segment although total intra-segment revenue may be disclosed as a lump sum for all segments. 
C)  An entity must disclose the segment revenue for each segment; with revenue from external customers and intra-segment revenue reported separately. 
D)  None of the above.

Question 14

In reporting segment information an entity must provide a reconciliation of:

Accepted Answer

A)  reportable segment sales revenue to total revenue 
B)  reportable segment profit or loss before tax to total profit or loss before tax 
C)  reportable segment assets and liabilities to total assets and liabilities 
D)  all of the above 
A)  reportable segment sales revenue to total revenue 
B)  reportable segment profit or loss before tax to total profit or loss before tax 
C)  reportable segment assets and liabilities to total assets and liabilities 
D)  all of the above

Question 15

Under current accounting standards companies are required to report information on geographical segments.

Accepted Answer

A) True 
 B)False

Question 16

Amount of impairment losses and reversal of impairment losses for operating segments is required under Accounting Standard AASB136 Impairment of Assets.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the issues involved in allocating revenues,profits and assets to segments.

Accepted Answer

Issues involved in allocation of revenue

Question 18

Outline the requirements to report information on geographical segments under current accounting standards

Accepted Answer

Reporting information on geographical se

Question 19

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands):
  
-On revenue and results only,the reportable business segments are:

Accepted Answer

A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above. 
A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above.

Question 20

The aim of segment reporting is to provide entity stakeholders with the information required to:

Accepted Answer

A)  Have a better understanding of the entity's past performance. 
B)  Make a more informed assessment of the entity's risks and returns. 
C)  Make more informed judgments about the performance and position of the entity as a whole. 
D)  All of the above. 
A)  Have a better understanding of the entity's past performance. 
B)  Make a more informed assessment of the entity's risks and returns. 
C)  Make more informed judgments about the performance and position of the entity as a whole. 
D)  All of the above.

Under Accounting Standard AASB8 Operating Segments segments are delineated on the basis of:

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are intra-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

How might management be able to conceal segment information under the 'management approach' to identifying reportable segments?

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands): -On revenue criteria only,the reportable business segments are:

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are inter-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

Where the total revenue derived by the reportable segments of a group from the provision of goods or services to external customers is less than 75% of the total group sales revenue:

The management approach to identifying segments will result in consistency between internal and external reporting of segment information.

The major argument against supplying segment information is that it provides users with potentially competitively damaging information.

Segment information must be disclosed:

A segment which does not meet any of the materiality thresholds in the current period can never be disclosed as a reportable segment.

Under Accounting Standard AASB1039 Concise Financial Reports segment information is required to be presented:

In the reporting of segment revenue data:

In reporting segment information an entity must provide a reconciliation of:

Under current accounting standards companies are required to report information on geographical segments.

Amount of impairment losses and reversal of impairment losses for operating segments is required under Accounting Standard AASB136 Impairment of Assets.

Discuss the issues involved in allocating revenues,profits and assets to segments.

Outline the requirements to report information on geographical segments under current accounting standards

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands): -On revenue and results only,the reportable business segments are:

The aim of segment reporting is to provide entity stakeholders with the information required to:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Filters

Exam 11: Segment Reporting by Diversified Entities

Under Accounting Standard AASB8 Operating Segments segments are delineated on the basis of:

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are intra-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

How might management be able to conceal segment information under the 'management approach' to identifying reportable segments?

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands): -On revenue criteria only,the reportable business segments are:

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are inter-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

Where the total revenue derived by the reportable segments of a group from the provision of goods or services to external customers is less than 75% of the total group sales revenue:

The management approach to identifying segments will result in consistency between internal and external reporting of segment information.

The major argument against supplying segment information is that it provides users with potentially competitively damaging information.

Segment information must be disclosed:

A segment which does not meet any of the materiality thresholds in the current period can never be disclosed as a reportable segment.

Under Accounting Standard AASB1039 Concise Financial Reports segment information is required to be presented:

In the reporting of segment revenue data:

In reporting segment information an entity must provide a reconciliation of:

Under current accounting standards companies are required to report information on geographical segments.

Amount of impairment losses and reversal of impairment losses for operating segments is required under Accounting Standard AASB136 Impairment of Assets.

Discuss the issues involved in allocating revenues,profits and assets to segments.

Outline the requirements to report information on geographical segments under current accounting standards

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands): -On revenue and results only,the reportable business segments are:

The aim of segment reporting is to provide entity stakeholders with the information required to:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Filters