F1-Segment Reporting

Question 1

What is the objective of segment reporting?

Answer 1

-to provide information on the business activities and the economic environment to help users of the financial statements.

Question 2

what are the requires disclosure for all public enterprises?

Answer 2

• Operating Segment
• Products and services
• geographic areas
• major customers

Question 3

should be eliminate intra-entity transactions?

Answer 3

NO

Question 4

what is an operating segment?

Answer 4

is a component of an enterprise that:

• engages in business activities to earn revenue and incur in expenses
• whose operating results are reviewed for Chief operating decision maker to make decision
• Discrete financial information is available

Question 5

to be a reportable segment, what is the thresholds?

Answer 5

• 10% Test of revenues, profit & loss, assets

- 75%

Question 6

Formula of Operating Profit or Loss of reportable segment?

Answer 6

Revenues
Less: Directly Traceable Cost
Less: Reasonably allocated costs