After several satisfying years of engagement in exciting spy work, Mr. James Bond finally decided to hang up his gun and other surveillance equipment. Of course he refused to be relegated to a sedentary life and so embarked upon a second journey of excitement. He, with an enormous net worth earned during his spying career, acquired an existing multi-segment business operation and thus launched Bond Army Navy Goods, Inc., [BANG]. He had no dearth for customers for his products. He tapped most of his old associates, previously engaged in crime, who had emerged from imprisonment to utilize their enormous net worth into legal enterprises. In stepped Bond with BANG to supply them the products required for their production requirements. He set up these contacts, with a warning, One wrong step and back you return into prison". BANG, Inc., when initially acquired, was a regional manufacturing firm. It experienced a rapid growth but soon evolved into an international conglomerate. It manufactured a wide range of products and services used in defense and crime prevention operations. You have been hired to oversee all applications related with the accounting for segments management and reporting. Your current task is to prepare the report required under IFRS for the segments of BANG for 2019. Normally, this task would have been undertaken by your assistant, Mr. Pennyworth. He was the one who maintained the transaction records for all the segments of the company. However, one fine day, Mr. Pennyworth met with a most unfortunate accident. You see a few days back in a meeting, Mr. Bond took a shot at a fly on the wall. Mr. Bond almost always gets his shot but on this rare occasion, he missed and got Mr. Pennyworth in the neck instead. The bullet entered through the neck and lodged itself near the brain, causing Mr. Pennyworth to suffer a temporary lapse in memory. Soon everyone realized that Mr. Pennyworth had retained a major part of the segment related data in his head and which now became almost impossible to retrieve. You are now tasked with the responsibility to reconstruct the data, determine several missing key numbers, marked N1-N10 and provide suitably clear explanations to the listed questions. A frantic search of Mr. Pennyworth's table and file cabinets produced a few scraps of fragmented scribbled notes which are given in the Additional Information section and an incomplete table in Figure I on the following pages below. Additional Information: You were able to salvage some limited amount of information from the notes left behind by Pennyworth and transcribed these into three separate sections. A. You were able to acquire some notes which the assistant had jotted down on a sheet of paper while he was preparing to work on the report. These were as follows: 1. The total revenues of the Surveillance division was 25% of the total revenues of the company. 2. The total revenues of the Apparel division was 7% of the external revenues of the company. 3. The return on assets for the Communication division was 35%. 4. The return on sales for the Apparel division was -40% (negative => apparel division posted an operating loss). 5. The profits for the Aviation division was 180% of its total assets. B. Next, the assistant applied the required tests to determine which of the six divisions discussed above are to be considered as reportable segments and obtained the following information: (i) Revenue test 1. The total revenues for the Combat division exceeded the revenue test threshold figure by $260,000. 2. Similarly, the total revenues for the Aviation division exceeded the revenue test threshold figure by $176,000. (ii) Operating profit test Not sure about this section. To be determined later. (iii) Identifiable Assets test: The test threshold figure for identifiable assets amounted to $64,000. 1. The identifiable assets for the Combat division exceeded the test threshold figure by $136,000. 2. Similarly, the identifiable assets for the Apparel division was less than the test threshold figure by $27,000. 3. The Transport division reported its annual interest expense for the year to be $1.280. This interest expense, accruing annually, was paid in cash at a coupon rate of 5% on long term bonds. The bonds were the only liabilities for the division and their amount was duly reported at the year end. C. The liabilities for each segment equaled 80% of the assets of that respective segment. Figure I - in '000 Combat Surveillance | Transpor | Apparel | Communicatio Operations/ Divisions Aviation Total Revenues-External N01 NO2 NO3 N04 N05 N06 1,100,000 Inter-segment 0 0 21,000 20,000 54,000 NO7 5,000 N10 Total Revenues NO8 N09 N11 N12 N13 Cost of Goods Sold 0.55 0.6 0.7 0.75 0.55 0.45 Cost of Goods Sold N14 N15 (25,900) N16 N17 N18 Operating Expenses (108,000) N19 N20 N21 (29,900) N22 Operating Profit/ (Loss) $ N23 62,000 (2,600) N24 N25 N26 Assets N27 N28 N29 N30 56,000 45,000 Liabilities N31 N32 N33 N34 N35 N36 REQUIRED: 1. Determine the several missing primary numbers which are blank and marked N01 - N36, in the table given above. Show detailed computations for each figure. Also show your computations for other supporting figures which maybe be required for the computation of these numbers. 2. Identify which of the six divisions shown above are to be considered as reportable segments. Be sure to indicate in detail how these segments have met all the classification requirements as specified by IFRS. If you have made any exceptions to the IFRS requirements, be sure to clearly specify them and give reasons for doing so. 3. Identify and describe the three additional factors under IFRS to be considered while applying the tests identifying reportable segments. 4. IFRS requires the disclosures of specific financial data related to the reporting for segments. Use the data as determined by you to report the required information in the following format given below: Items/Divisions Other Total External Revenues Intersegment Revenues Total Revenues Cost of Goods Sold Operating Expenses Total Expenses Operating Profit (Loss) Identifiable Assets Liabilities After several satisfying years of engagement in exciting spy work, Mr. James Bond finally decided to hang up his gun and other surveillance equipment. Of course he refused to be relegated to a sedentary life and so embarked upon a second journey of excitement. He, with an enormous net worth earned during his spying career, acquired an existing multi-segment business operation and thus launched Bond Army Navy Goods, Inc., [BANG]. He had no dearth for customers for his products. He tapped most of his old associates, previously engaged in crime, who had emerged from imprisonment to utilize their enormous net worth into legal enterprises. In stepped Bond with BANG to supply them the products required for their production requirements. He set up these contacts, with a warning, One wrong step and back you return into prison". BANG, Inc., when initially acquired, was a regional manufacturing firm. It experienced a rapid growth but soon evolved into an international conglomerate. It manufactured a wide range of products and services used in defense and crime prevention operations. You have been hired to oversee all applications related with the accounting for segments management and reporting. Your current task is to prepare the report required under IFRS for the segments of BANG for 2019. Normally, this task would have been undertaken by your assistant, Mr. Pennyworth. He was the one who maintained the transaction records for all the segments of the company. However, one fine day, Mr. Pennyworth met with a most unfortunate accident. You see a few days back in a meeting, Mr. Bond took a shot at a fly on the wall. Mr. Bond almost always gets his shot but on this rare occasion, he missed and got Mr. Pennyworth in the neck instead. The bullet entered through the neck and lodged itself near the brain, causing Mr. Pennyworth to suffer a temporary lapse in memory. Soon everyone realized that Mr. Pennyworth had retained a major part of the segment related data in his head and which now became almost impossible to retrieve. You are now tasked with the responsibility to reconstruct the data, determine several missing key numbers, marked N1-N10 and provide suitably clear explanations to the listed questions. A frantic search of Mr. Pennyworth's table and file cabinets produced a few scraps of fragmented scribbled notes which are given in the Additional Information section and an incomplete table in Figure I on the following pages below. Additional Information: You were able to salvage some limited amount of information from the notes left behind by Pennyworth and transcribed these into three separate sections. A. You were able to acquire some notes which the assistant had jotted down on a sheet of paper while he was preparing to work on the report. These were as follows: 1. The total revenues of the Surveillance division was 25% of the total revenues of the company. 2. The total revenues of the Apparel division was 7% of the external revenues of the company. 3. The return on assets for the Communication division was 35%. 4. The return on sales for the Apparel division was -40% (negative => apparel division posted an operating loss). 5. The profits for the Aviation division was 180% of its total assets. B. Next, the assistant applied the required tests to determine which of the six divisions discussed above are to be considered as reportable segments and obtained the following information: (i) Revenue test 1. The total revenues for the Combat division exceeded the revenue test threshold figure by $260,000. 2. Similarly, the total revenues for the Aviation division exceeded the revenue test threshold figure by $176,000. (ii) Operating profit test Not sure about this section. To be determined later. (iii) Identifiable Assets test: The test threshold figure for identifiable assets amounted to $64,000. 1. The identifiable assets for the Combat division exceeded the test threshold figure by $136,000. 2. Similarly, the identifiable assets for the Apparel division was less than the test threshold figure by $27,000. 3. The Transport division reported its annual interest expense for the year to be $1.280. This interest expense, accruing annually, was paid in cash at a coupon rate of 5% on long term bonds. The bonds were the only liabilities for the division and their amount was duly reported at the year end. C. The liabilities for each segment equaled 80% of the assets of that respective segment. Figure I - in '000 Combat Surveillance | Transpor | Apparel | Communicatio Operations/ Divisions Aviation Total Revenues-External N01 NO2 NO3 N04 N05 N06 1,100,000 Inter-segment 0 0 21,000 20,000 54,000 NO7 5,000 N10 Total Revenues NO8 N09 N11 N12 N13 Cost of Goods Sold 0.55 0.6 0.7 0.75 0.55 0.45 Cost of Goods Sold N14 N15 (25,900) N16 N17 N18 Operating Expenses (108,000) N19 N20 N21 (29,900) N22 Operating Profit/ (Loss) $ N23 62,000 (2,600) N24 N25 N26 Assets N27 N28 N29 N30 56,000 45,000 Liabilities N31 N32 N33 N34 N35 N36 REQUIRED: 1. Determine the several missing primary numbers which are blank and marked N01 - N36, in the table given above. Show detailed computations for each figure. Also show your computations for other supporting figures which maybe be required for the computation of these numbers. 2. Identify which of the six divisions shown above are to be considered as reportable segments. Be sure to indicate in detail how these segments have met all the classification requirements as specified by IFRS. If you have made any exceptions to the IFRS requirements, be sure to clearly specify them and give reasons for doing so. 3. Identify and describe the three additional factors under IFRS to be considered while applying the tests identifying reportable segments. 4. IFRS requires the disclosures of specific financial data related to the reporting for segments. Use the data as determined by you to report the required information in the following format given below: Items/Divisions Other Total External Revenues Intersegment Revenues Total Revenues Cost of Goods Sold Operating Expenses Total Expenses Operating Profit (Loss) Identifiable Assets Liabilities