The Guidelines to Determine That a Segment Is Reportable in Accordance

question 12

Multiple Choice

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

• A) The segment's external revenue is equal to or greater than 10 per cent of the external sales of all operating segments.
• B) The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses.
• C) The segment's reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments.
• D) The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses, and the segment's revenues are 10 per cent or more of the total segment revenues.

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Definitions:

Depreciated

Refers to an asset that has decreased in value over time, typically due to wear and tear or obsolescence.

Sales Commission

A payment made to salespersons, often calculated as a percentage of sales revenue, for meeting or exceeding sales targets.

Maintenance

The activities and expenses related to the ongoing upkeep and repair of assets to ensure their functionality and efficiency.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.