Segmented Reporting
Tangerine Corporation's Most Recent (Condensed) Income Statement Is

Essay

Segmented reporting
Tangerine Corporation's most recent (condensed) income statement is presented below: $\begin{array}{llr} \text { Revenues.} &&\$2,500,000\\ \text { Expenses} &\\ \text {Cost of goods sold } &\$1,000,000\\ \text { Operating and administrative expenses } &500,000\\ \text {Depreciation expense } &100,000&1,600,000\\ \text { Income before taxes. } &&900,000\\\text { Income tax expense. } &&270,000\\ \text { Net income. } &&\$630,000\\\text { Earnings per share }(100,000 \text { shares }&&\$6.30\\\end{array}$

$\text { The following data relates to Tangerine's operating segments: }$

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Percent Identified with Segment }$
$\begin{array}{llll}&\text { Hotels } & \text { Grains } & \text { Candy }\\\text { Revenues } & 42 \% & 50 \% & 8 \% \\\text { Cost of goods sold } & 48 & 49 & 3 \\\text { Operating and administrative expenses } & 35 & 50 & 15 \\\text { Depreciation expense } & 46 & 42 & 12\end{array}$
Included in the amounts allocated to each segment on the above percentages are the following expenses, which relate to general corporate activities: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Operating Segment }$
$\begin{array}{lrrrr}&\text { Hotels }&\text { Grains } &\text { Candy }& \text { Totals }\\\text { Operating and administrative expenses } & \$ 30,000 & \$ 22,000 & \$ 8,000 & \$ 60,000 \\\text { Depreciation expense } & 4,000 & 5,000 & 3,000 & 12,000\end{array}$
Instructions
(Assume that the corporation adheres to IFRS)
a) Prepare a schedule showing the amounts distributed to each segment.
b) Based only on the above information, which segments must be reported and why?