Under IFRS 8, Certain Reconciliations, Such as Total Reportable Segment

question 21

Multiple Choice

Under IFRS 8, certain reconciliations, such as total reportable segment revenues to the entity's revenues, are required. Why are these reconciliations required?

• A)To prove that the consolidated financial statements balance
• B)To ensure that all reportable segments have been identified
• C)To show the relative contribution of each segment to the total
• D)To show how reportable segments were identified

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Definitions:

Different Financial Instruments

Various types of investment assets, including stocks, bonds, derivatives, and mutual funds, that provide a way for individuals and businesses to invest, finance operations, or manage risk.

Financial Instrument

A contract that leads to the creation of a financial asset for one party and results in a financial liability or equity instrument for another party.

Market Risk

The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates, market interest rates or some other market prices.

Credit Risk

The risk of loss due to a borrower's failure to make payments on any type of debt.