Question

Question 2:

The following information relates to M Ltd.

Operating Segment	Revenue $	Results (Profits/(Losses) $	Total assets $
Mining	7,800	3,230	8,000
Manufacturing	9,200	(1,510)	9,040
Chemicals	1,500	(260)	2,500
Agriculture	1,200	120	900
General corporate	-	-	3,000
Total segment	$19,700	$1,580	$23,440

Required:      

Identify the reportable segments for M Ltd with reference to AASB 8.

Answer 1

To be a reporting segment , following criteria must be met:-

1. Revenue must be 10% or more of combined revenue or

2. Profits must be 10% or more of combined profits or

3. Assets must be 10% or more of combined assets

So, in the above question except Agriculture segment all are reportable segments.

Segments	Revenue	%	Assets	%	Profits / Losses	%	Reportable
Mining	7800	40%	8000	34%	3230	96%	Yes
Manufacturing	9200	47%	9040	39%	-1510	-85%	Yes
Chemicals	1500	8%	2500	11%	-260	-15%	Yes
Agriculture	1200	6%	900	4%	120	4%	No
General corporate	0	0%	3000	13%	0	0	Yes
	19700	100%	23440	100%	1580
Notes:-
Total of profit making segment will be divided by (3230+120)=3350
Total of loss making segment will be divided by (260+1510)=1770