According to IFRS, an Operating Segment Is a Reportable Segment

question 36

Multiple Choice

According to IFRS, an operating segment is a reportable segment if

• A)its operating profit is 10% or more of the combined operating profit of profitable segments only.
• B)its operating loss is 10% or more of the combined operating losses of segments that incurred an operating loss.
• C)the absolute amount of its operating profit or loss is 10% or more of the greater, in absolute amount, of (a)the combined reported operating profit of all operating segments that incurred a loss, of (b)the combined reported profit of all operating segments that did report a profit.
• D)the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of (a)the combined reported operating profit of all operating segments that did not incur a loss, or (b)the combined reported loss of all operating segments that did report a loss.

---

Definitions:

Pure Interest Rate

The theoretical rate of return of an investment with no risk of financial loss, not influenced by demand for investments or market risks.

Earning Power

A company's ability to generate profit from its operations over time and maintain financial stability.

Inflation

The velocity at which the overall cost of products and services climbs, reducing purchasing capability.

Full Disclosure

Full disclosure is a policy requiring companies to provide all relevant, material information about their operations, financial condition, and management to investors and stakeholders.