Exam 22: Operating Segments

Assuming the three business units below are operating segments and all revenue earned are from external customers, in which of the following scenarios does Colourband Ltd need to identify another reportable segment to be disclosed? Revenue in Red Blue Green Total operating segments Other business units Total Colourband Ltd I. 75 160 320 555 250 805 II. 110 140 275 525 175 700 III. 230 250 375 855 315 1170

Additional segments must be identified as reportable segments until at least:

Under AASB 8, two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of the standard, the segments have similar economic characteristics, and the segments are similar in each of the following respects: I. $\quad$ the nature of the production processes II. $\quad$ the markets in which the products are sold are closely related III. $\quad$ the type or class of customer for their products and services IV. $\quad$ the nature of the regulatory environment

If an operating segment does not meet all of the thresholds of significance, it:

Under AASB 8, entities are required to provide reconciliations on the followings, except for:

Which of the following statements is incorrect? AASB 8 requires external revenue by product to be disclosed on an entity wide basis by all entities to which AASB 8 applies:

AASB 8 prescribes that an operating segment must be identified on the basis of:

Compared to AASB 114 Segment Reporting, AASB 8 Operating Segments can be described as being:

CODM refers to:

What is the reasonable maximum number of an entity's reportable segments according to the additional guidance provided in AASB 8?

Huey, Dewey, and Louie are the three operating segments of Donald Company. Which of the following statements is correct based on the information provided below? In Huey Dewey Louie Total operating segments Other business units Total Donald Company Revenue 275 130 410 815 295 1110 Profit/loss 100 30 185 315 60 375 Assets 355 215 750 1320 310 1630

Which of the followings are the requirements under AASB 8? I. Identifying primary and secondary segments. N. Identifying operating segments based on predominant sources of risks and returns. II. Disclosure of reliance on major external customers. V. Prepar ing segment information in conformity with accounting policies for prepar ing financial statements. III. Disclosure of a measure of profit or loss and total assets. V. Does not distinguish between revenues and expenses from internal and external customers. Enues and expenses from internal and external customers.or preparing financial statements.

Which of the following information is not required to be disclosed by entities complying with AASB 8?

For financial reporting periods commencing prior to 1 January 2009, the accounting standard relating to segment reporting was:

Based on the information provided below, which business unit(s) should be identified as TeeVee Ltd's operating segment(s)? Glee Homrland GSI Can the component generate revenue and incur expenses from its business activities? Yes Yes Yes Are the component's operating results regularly revienved by the CODM? Yes Yes No Is discrete financial information available for the component? No Yes Yes

AASB 8 requires disclosure in relation to which of the following?

Which of the following statements is correct about the controversial issues surrounding AASB 8?

Segment disclosures are designed to:

A key objective of providing financial reporting information by segment is:

Bloomsville Ltd has a board of directors that consist of a Managing Director (MD) and non-executive directors. The MD has a regular monthly meeting with the Chief Operating Officer (COO) and the managers of Bloomsville's three business units. During the meeting, each manager would present an update of their unit's financial performance. The financial information is then reviewed by the MD and the COO to assess the performance of each business unit and to make decisions related to resource allocation. In this case, who is the CODM of Bloomsville?