The Guidelines to Determine That a Segment Is Reportable in Accordance

question 50

Multiple Choice

The guidelines to determine that a segment is reportable in accordance with AASB 8 "Operating Segments" includes:

• A) Segment's reported revenue, including external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments;
• B) Segment's reported profit or loss is 10 per cent or more of the greater, 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;
• C) Segment's assets are 10 per cent or more of the combined assets of all operating segments.
• D) 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.
• E) All of the given answers.

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Definitions:

Inference Forms

Patterns of reasoning where specific statements lead logically to a conclusion.

MP

In logic, MP refers to Modus Ponens, a form of argument that if a conditional statement ('If P then Q') is accepted, and P is affirmed, then Q must also be affirmed.

MT

An abbreviation or shorthand for Modus Tollens, a logical argument form.

Inference Forms

Standard logical structures that outline the relationship between premises and conclusion, guiding the derivation of the latter from the former.