Floothair plc is a large international airline company with three operating segments: International airline business Domestic airline
Question:
Floothair plc is a large international airline company with three operating segments:
- International airline business
- Domestic airline business
- Non-airline business.
The company reports segment information for the year to 31 May 2018 in accordance with IFRS8 Operating Segments. The following information is available for the year:
£m | |
Total revenue: | |
International airline business | 8,207 |
Domestic airline business | 402 |
Non-airline business | 267 |
Unallocated income | 22 |
Profit/(loss) before tax and finance costs: | |
International airline business | 803 |
Domestic airline business | (30) |
Non-airline business | 16 |
Profit on sale of assets: | |
Non-airline business | 32 |
Unallocated | 4 |
Net finance costs | 149 |
Income tax expense | 170 |
Assets: | |
International airline business | 12,050 |
Domestic airline business | 240 |
Non-airline business | 140 |
Liabilities: | |
International airline business | 4,566 |
Domestic airline business | 84 |
Non-airline business | 350 |
Unallocated | 5,420 |
Total revenue includes the following inter-segment sales: | |
International airline business | 103 |
Domestic airline business | 14 |
Non-airline business | 7 |
Required:
(a) Prepare, insofar as the above information permits, a segment report for Floothair plc for the year to 31 May 2018. Assume that the company decides to treat all three segments as reportable segments.
(b) Use the segment report to identify three significant aspects of the performance of Floothair plc which would not otherwise be evident.
(CIPFA)
Step by Step Answer:
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville