Disclosures LO5, 6 Jag Ltd has three reportable segments, A, B and C, which represent
Question:
Disclosures LO5, 6 Jag Ltd has three reportable segments, A, B and C, which represent distinct geographical areas. The CODM receives financial information about the geographical areas. Segment A produces Product P and Product Y. Segment B produces Product P only. Segment C produces Product Y and sells Service Z. The following financial information about each segment is reported to the CODM. • Revenues from external customers • Earnings before interest, depreciation and amortisation and tax (EBITDA) • Depreciation and amortisation Required State whether each of the following statements is true or false, by reference to the relevant requirements of AASB 8/IFRS 8. 1. Jag Ltd must disclose EBITDA for each reportable segment. 2. Jag Ltd must disclose total assets for each reportable segment. 3. Jag Ltd must reconcile the total EBITDA of segments A, B and C to its reported profit determined in accordance with accounting standards before income tax and discontinued operations. 4. Jag Ltd must disclose total liabilities for each reportable segment. 5. Jag Ltd must disclose depreciation and amortisation for each reportable segment. 6. Jag Ltd must disclose revenue from external customers for each of Product P, Product Y and Service Z.
Step by Step Answer:
Financial Reporting
ISBN: 978-0730363361
2nd Edition
Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes