Question

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data...

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Operating segments are disclosed as reportable segments after some tests.

1. so if in the previous year the operating segment was disclosed as reportable segment but in current year it does not pass the test to disclose it as reportable segment then even after not passing the test , the segment would be shown as reportable segment if the management of the organisation feels that this is still significant.

hence it would be disclosed to be comparative with previous year.

2. Opposite to what was the case in point number 1, if the segment was not reportable is previous year but becomes reportable in current year, then the prior year would be restated to show the segment comparative with current year.

Please upvote/thumbs up if the solution was helpful

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In order to ensure that information is useful to investors and other external users, Generally Accepted...
In order to ensure that information is useful to investors and other external users, Generally Accepted Accounting Principles have been established. To quickly summarize some of the accounting concepts and/or principles that apply to the accounting process, there are the following: Business entity principle - states that a business is accounted for separately from other business entities, including its owner. Going concern concept - states that the accounting information needs to reflect an assumption that the business will continue operating...
ASC 280 discusses the specific disclosures for reporting segment information. ASC 280 allows the aggregate of...
ASC 280 discusses the specific disclosures for reporting segment information. ASC 280 allows the aggregate of more than two operating entities to be reported as a single operating unit. The basis of grouping could be the nature of the production process, the type of customer, the distribution similarity, and finally, the nature of the products or services. How does grouping of operating entities assist (or not assist) in providing transparent information to key decision makers? Why?
Using Ulta Beauty Inc: Segment Data: Use the bulleted format to list the company's segments/product lines...
Using Ulta Beauty Inc: Segment Data: Use the bulleted format to list the company's segments/product lines and the percent that each segment contributes to sales/ revenues. Please provide percentages for segments. List key events from the last five years; such as acquisitions, divestures, new products and or markets and management changes. Using this information, comment on the company's business model and identify strengths and concerns. Cite sources. Please see the link below: Using Ulta Beauty Inc: Segment Data: Use the...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenues from Outsiders Intersegment Transfers Operating Expenses Autos $ 4,015,000 $ 115,000 $ 3,615,000 Trucks 3,515,000 215,000 4,015,000 SUVs 2,615,000 0 2,015,000 Motorcycles 915,000 65,000 1,035,000 The company incurred additional operating expenses (of a general nature) of $1,215,000. What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenues from Outsiders Intersegment Transfers Operating Expenses Autos $ 4,025,000 $ 125,000 $ 3,625,000 Trucks 3,525,000 225,000 4,025,000 SUVs 2,625,000 0 2,025,000 Motorcycles 925,000 75,000 1,045,000 The company incurred additional operating expenses (of a general nature) of $1,225,000. What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment...
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenues from Outsiders Intersegment Transfers Operating Expenses Autos $ 4,018,000 $ 118,000 $ 3,618,000 Trucks 3,518,000 218,000 4,018,000 SUVs 2,618,000 0 2,018,000 Motorcycles 918,000 68,000 1,038,000 The company incurred additional operating expenses (of a general nature) of $1,218,000. What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately...
Exercise 15-36 (Algo) Segment Reporting (LO 15-5) Leapin’ Larry’s Pre-Owned Cars has two divisions, Operations and...
Exercise 15-36 (Algo) Segment Reporting (LO 15-5) Leapin’ Larry’s Pre-Owned Cars has two divisions, Operations and Financing. Operations is responsible for selling Larry’s inventory as quickly as possible and purchasing cars for future sale. Financing Division takes loan applications and packages loans into pools and sells them in the financial markets. It also services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Operations Division had $23 million in sales last year. Costs, other than those...
Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):...
Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Segments Red Blue Green Pink Black White Sales to outside parties $ 1,822 $ 823 $ 525 $ 320 $ 132 $ 110 Intersegment revenues 27 102 120 0 27 313 Salary expense 625 390 413 323 328 73 Rent expense 150 177 92 103 53 42 Interest expense 76 70 93 60 25 16 Income tax expense (savings) 152 98 72 (97 )...
ABC Company operates three segments, of which two of them were showing a loss. Segment 1...
ABC Company operates three segments, of which two of them were showing a loss. Segment 1 Segment 2 Segment 3 Total Sales…………………… $100,000 $200,000 $300,000 $600,000 Less Cost of goods sold 80,000 150,000 200,000 430,000 Gross margin…………. 20,000 50,000 100,000 170,000 Less Operating expenses 30,000 70,000 70,000 170,000 Net operating income…. $(10,000) $(20,000) $30,000     $0                            For each segment, 40% of its cost of goods sold and operating expenses are variable expenses and the remaining balances are fixed...
A segment has the following data: Sales $780000 Variable expenses 340000 Fixed expenses 550000 What will...
A segment has the following data: Sales $780000 Variable expenses 340000 Fixed expenses 550000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $340000 increase $440000 decrease $5667 decrease Cannot be determined from the data provided
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT