If question got say
‘listed”
Need to present segment reporting
Steps for recognise operating segment and reportable segment
- Step 1: see is it operating segment
- Step 2: then see can meet 10% or not
Criterias of operating segments
should all meet the criterias:
- that engages in business activity that earns revenue and incur expenses (research & development also include)
- operating results are regularly reviewed by CODM (Chief Operating Decision-Maker) for resource allocation decisions and assess performance
- for which separate/discrete financial information is avalaible
Reportable segments
Revenue: If segment meet 10% rule, then need to diclose, exp: 10% of total revenue (12490*10% = 1249), exceed 1249 revenue then disclose
If external revenue (activity 1), selected reportable item/total is > 75% then need to disclose on reportable segment, if no then add other segment together to exceed 75%
P&L: compare total profit and total loss which ever is higher, exp: profit is higher then choose profit x 10% = xxx, then disclose items which exceed xxx (report it on f/s)
Assets: total asset x 10%
Any operating segment fulfill any criteria 10% then can disclose already
Aggregation
类似就合起来，不类似就分开
Operating segment can be combined if they have similar economic characterics
Related party transaction
RPT (key management personnel) need to disclose these:
* The related party relationship
* The nature of the transaction
* The transaction amount during the year
* The amount outstanding as at year end
Government related party:
* name of governemnt
* nature of relationship
* significant transaction amount
If question say no disclose these, then say no comply this standard and say ethical issue: integrity questionable)
Associate
- Hold 20% - 49% interest
- has significant influence over …
- has power to participate in decision making (at least 1 board representation/board director on the board of associate)
Subsidiary
When an investor control another entity, the investor is having a subsidiary. Control is defined to include the following:
- Power over the investee;
- Exposure to variable return;
- Ability to use power to affect the return from investee.
