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:

Bartlett and Goshal

Scholars known for their work on international business strategy, particularly for their theories on how multinational companies should be managed.

Decentralized Decision-Making

A management strategy where decision-making authority is distributed among various levels within the organization, rather than being centralized in a single point of leadership.

Geocentric Staffing Model

An approach to staffing for international businesses that seeks the best people for key jobs throughout the organization, regardless of nationality.

Foreign Assignments

Job responsibilities assigned to employees that require relocation to a country other than their own, usually for international work experience or organizational expansion.