The Guidelines to Determine That a Segment Is Reportable in Accordance

question 2

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.
• E) None of the given answers.

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Definitions:

Poisson Approximation

A statistical technique used to approximate the probabilities of events with a very low probability over a large number of trials.

Binomial Random Variable

A type of random variable that takes the number of successes in a fixed number of trials of a binomial experiment, where each trial results in a success or failure, with the probability of success being the same for all trials.

Cumulative Binomial Probabilities

The sum of the probabilities of obtaining all outcomes up to a specified point in a binomial distribution.

Random Variable

A variable whose values are outcomes of a random phenomenon.