Question

Nottage Company has four separate operating segments:

	East				West				North				South
Sales to outsiders	$	142,000			$	90,500			$	104,500			$	86,500
Intersegment transfers		35,750				30,750				14,900				19,900

What revenue amount must one customer generate before it must be identified as a major customer?

Multiple Choice

• $52,480.

• $42,350.

• $46,585.

• $63,525.

Answer 1

Answer:

As per IFRS 8 - Operating Segment Reporting

an entity should report it segment if it segregate or aggregate met specified criteria.

Its reported revenue from both external or internal sales or transfer is 10% or more of combined revenue, internal external of all segments

Profit or loss 10% or more of all segments profit / loss

Its assets are 10% or more of all segments assets

	Agrregate
Sales Outsider	423500
Intersegment transfer	101300
	524800

10% of Aggreagate Sales $524800

$52480