A. Alfafa has the following operating segments. The revenues (internal and external), profits and assets are our below.

Segment

A

B

C

D

E

F

Revenue

RM'000

12,000

44,000

13,000

9,000

16,000

6,000

100,000

Profit or loss

RM'000

5,000

8,000

(1,000)

(2,000)

2,000

1,700

13,700

Total assets

RM'000

60,000

110,000

50,000

75,000

20,000

10,000

325,000

REQUIRED:

Determine the reportable segments for Alfafa by using the quantitative threshold test and 75% constraints.

[10 marks]

B. In its annual financial statements for the year ended 31 March 2013, Lulu Erika, a publiclimited company, had identified the following operating segments:

(i)Segment 1 local train operations

(ii) Segment 2 inter-city train operations

(iii) Segment 3 railway constructions

The company disclosed two reportable segments.

Segments 1 and 2 were aggregated into a single reportable

operating segment. Operating segments 1 and 2 have been aggregated on the basis of their similar business characteristics, and the nature of their products and services.

In the local train market, it is the local transport authority which awards the contract and pays Lulu Erika for its services.

In the local train market, contracts are awarded following a competitive tender process, and the ticket prices paid by passengers are set by and paid to the transport authority.

In the inter-city train market, ticket prices are set by Lulu Erika and the passengers pay Lulu Erika for the service provided.

REQUIRED:

Based on MFRS 8, advise Lulu Erika's on how the above accounting issue should be dealt with in its financial statements for the years.

U . A . X X, A ab . A . A QUESTION 2 (25 Marks) A. Alfafa has the following operating segments. The revenues (internal and external), profits and assets are our below. Segment A B C D E F Revenue 12,000 44,000 13,000 9,000 16,000 6,000 100,000 RM'000 Profit or 5,000 8.000 (1,000) (2,000) 2,000 1,700 13,700 loss RM'000 Total assets 60,000 1 10,000 50,000 75,000 20,000 10,000 325,000 RM'000 REQUIRED: Determine the reportable segments for Alfafa by using the quantitative threshold test and 75% constraints. [10 marks] B. In its annual financial statements for the year ended 31 March 2013, Lulu Erika, a public limited company, had identified the following operating segments: (i) Segment 1 local train operations (ii) Segment 2 inter-city train operations (iii) Segment 3 railway constructions The company disclosed two reportable segments. Segments 1 and 2 were aggregated into a single reportable operating segment. Operating segments 1 and 2 have been aggregated on the basis of their similar business characteristics, and the nature of their products and services. In the local train market, it is the local transport authority which awards the contract and pays Lulu Erika for its services. In the local train market, contracts are awarded following a competitive tender process, and the ticket prices paid by passengers are set by and paid to the transport authority. In the inter-city train market, ticket prices are set by Lulu Erika and the passengers pay Lulu Erika for the service provided. REQUIRED: Based on MFRS 8, advise Lulu Erika's on how the above accounting issue should be dealt with in its financial statements for the years. [7 marks] Y: 1/1 i mMM: 25. 4/EX 17 : 48 51: 78 TM: 273/1849 MIGHT O eC. R Bhd own 50 per cent and 20 per cent respectively of the ordinary shares that carry voting rights at a general meeting of shareholders of S Bhd and B Bhd. S Bhd owns 20 per cent respectively of the ordinary shares that carry voting rights at a general meeting of shareholders of A Bhd. R Bhd and F Bhd share joint control over entity MN Co. R Bhd F Bhd 50% Joint control 20% S Bhd B Bhd MN Co 20% A Bhd REQUIRED: Identify the parties that are related parties of Entity R for the purposes of preparing Entity R. separate financial statements. [8 marks] I ELL