in absolute amount of i the combined reported profit of all operating segments

In absolute amount of i the combined reported profit

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in absolute amount , of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss o (c) its assets are 10 per cent or more of the combined assets of all operating segments o Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to users of the financial statements Look at the reported segments that the companies have and see if they satisfy the 10% test Combining operating segments for the purposes of disclosure - In relation to combining operating segments that might not otherwise be deemed to be reportable, paragraph 14 of AASB 8 states: o An entity may combine information about operating segments that do not meet the quantitative thresholds with information about other operating segments that do not meet the quantitative thresholds to produce a reportable segment only if the operating segments have similar economic characteristics and share a majority of the aggregation criteria listed in paragraph 12 Sufficient segment data being disclosed? - In addition to determining whether or not a specific operating segment should be disclosed, we also need to consider whether, in total, a sufficient number of operating segments have been disclosed - AASB 8 requires a specific proportion of an entity’s total revenue to be attributed to operating segments - If total external revenue attributable to reportable segments constitutes less than 75 per cent of the total consolidated or entity revenue, additional segments shall be identified as reportable segments, even if they do not meet the 10 per cent thresholds in paragraph 15, until at least 75 per cent of total consolidated or entity revenue is included in reportable segments. Specifically, paragraph 15 requires: o If the total external revenue reported by operating segments constitutes less than 75 per cent of the entity’s revenue, additional operating segments shall be identified as reportable segments (even if they do not meet the criteria in paragraph 13) until at least 75 per cent of the entity’s revenue is included in reportable segments Combining segments in order to satisfy ’75 per cent of revenue’ test - Paragraph 16 of AASB 8 states: o Information about other business activities and operating segments that are not reportable shall be combined and disclosed in an ‘all other segments’
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category separately from other reconciling items in the reconciliations required by paragraph 28. o The sources of the revenue included in the ‘all other segments’ category shall be described Identifying reportable operating segments - See Worked Example 22.1—Determination of reportable segments—for details about how to identify reportable segments (next slide) Worked Example 22.1 – Determination of reportable segments - Consider the following segment information in relation to Maldives Ltd. For internal
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  • Balance Sheet, Generally Accepted Accounting Principles

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