Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A diversified group is one that operates in markets that:

Accepted Answer

A)  have different rates of profitability. 
B)  have different opportunities for growth. 
C)  have different degrees of risk. 
D)  all of the above. 
A)  have different rates of profitability. 
B)  have different opportunities for growth. 
C)  have different degrees of risk. 
D)  all of the above.

Question 3

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.

Question 4

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 5

Under Accounting Standard AASB 1039 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)  is not required. 
D)  none of the above. 
A)  in the financial statements. 
B)  in the notes to the financial statements. 
C)  is not required. 
D)  none of the above.

Question 6

Under Accounting Standard AASB 8 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.

Question 7

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

Accepted Answer

Reporting information on geographical se

Question 8

A segment that 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 9

As part of the consolidation process,any unrealised profits arising from intragroup merchandising transactions are eliminated.If the intragroup 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.

Question 10

The definition of operating segments requires recognition of components of the entity that:

Accepted Answer

A)  are cost centres. 
B)  are production units. 
C)  have similar gross margins. 
D)  none of the above. 
A)  are cost centres. 
B)  are production units. 
C)  have similar gross margins. 
D)  none of the above.

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

A diversified group is one that operates in markets that:

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

Under Accounting Standard AASB 1039 Concise Financial Reports,segment information is required to be presented:

Under Accounting Standard AASB 8 Operating Segments,segments are delineated on the basis of:

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

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

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

The definition of operating segments requires recognition of components of the entity that:

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

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Exam 11: Segment Reporting by Diversified Entities

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

A diversified group is one that operates in markets that:

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

Under Accounting Standard AASB 1039 Concise Financial Reports,segment information is required to be presented:

Under Accounting Standard AASB 8 Operating Segments,segments are delineated on the basis of:

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

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

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

The definition of operating segments requires recognition of components of the entity that:

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