IFRS 8 Operating Segments Applies To

question 3

Multiple Choice

IFRS 8 Operating Segments applies to:
I. public companies
II) listed entities
III) entities in the process of listing
IV) any entity who voluntarily chooses to apply it

• A) I, II and III only;
• B) II, III and IV only;
• C) I, II and IV only;
• D) I, III and IV only.

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Definitions:

Sales-Type Lease

A Sales-Type Lease is a lease agreement where the lessor recognizes immediate profit on the leased asset as if it were sold, typically used in lease financing.

Prepaid Asset

An asset representing goods or services paid for in advance but not yet used or consumed.

Unearned Income

Income received by an individual or a company for which the services have not yet been performed or goods have not yet been delivered. It is considered a liability until the services or goods are provided.

Direct Financing Lease

A lease agreement where the lessor purchases the leased asset specifically for the lease and all financial risks and rewards are transferred to the lessee.