You are compiling the consolidated financial statements for Winsor Corporation International (WCI). The corporation’s accountant, Anthony Reese, has provided you with the following segment information.

Instructions

Determine which of the segments must be reported separately and which can be combined under the category “Other.” Then, write a one-page memo to the company’s accountant, Anthony Reese, explaining the following.

a. Which segments must be reported separately and Which segments can be combined.

b. Which criteria you used to determine reportable segments.

c. Which major items must be disclosed for each.

Sino Group, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first quarter of the 2021–2022 fiscal year. Sino’s financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year.

Sales revenue .................................... ¥60,000,000
Cost of goods sold .............................. 36,000,000
Variable selling expenses .................... 1,000,000
Fixed selling expenses ......................... 3,000,000

Included in the fixed selling expenses was the single lump-sum payment of ¥2,000,000 for television advertisements for the entire year.

Instructions

a. Sino Group must issue its quarterly financial statements in accordance with IFRS regarding interim financial reporting.

1. Explain whether Sino should report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period.

2. State how the sales revenue, cost of goods sold, and fixed selling expenses would be reflected in Sino Group’s quarterly report prepared for the first quarter of the 2021– 2022 fiscal year. Briefly justify your presentation.

b. What financial information, as a minimum, must Sino Group disclose to its shareholders in its quarterly reports?

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Note 7: Major Segments of Business WCI conducts funeral service and cemetery operations in the United States and Canada. Substantially all revenues of WCI's major segments of business are from unaffiliated customers. Segment information for fiscal 2022, 2021, and 2020 follows (amounts in thousands). Real Dried Funeral Floral Cemetery Estate Whey Limousine Consolidated Revenues 2022 $302,000 $10,0oo $73,000 $ 2,000 $7,000 $12,000 $406,000 2021 245,000 6,000 61,000 4,000 4,00o 4,000 324,000 2020 208,000 3,000 42,000 3,000 1,000o 3,000 260,000 Operating Income 74,000 1,500 18,000 (36,000) 500 б0,000 2022 2,000 64,000 12,000 (28,000) 48,800 2021 200 200 400 2020 54,000 150 6,000 (21,000) 100 350 39,600 Capital Expenditures 2022 26,000 1,000 9,000 400 300 1,000 37,700 2021 28,000 2,000 60,000 1,500 100 700 92,300 2020 14,000 25 8,000 600 25 50 22,700 Depreciation and Amortization 2022 13,000 100 2,400 1,400 100 200 17,200 2021 10,000 50 1,400 700 50 100 12,300 2020 8,000 25 1,000 600 25 50 9,700 Identifiable Assets 2022 334,000 1,500 162,000 114,000 500 8,000 620,000 2021 322,000 1,000 144,0o0 52,000 1,000 6,000 526,000 2020 223,000 500 78,000 34,000 500 3,500 339.500