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Alfafa has the following operating segments. The revenues (internal and external), profits and assets are our below.Segment A B C D E F RevenueRM'000 12,000

Alfafa has the following operating segments. The revenues (internal and external), profits and assets are our below.Segment A B C D E F RevenueRM'000 12,000 44,000 13,000 9,000 16,000 6,000 100,000 Profit or lossRM'000 5,000 8,000 (1,000) (2,000) 2,000 1,700 13,700 Total assetsRM'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 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 constructionsThe company disclosed two reportable segments.Segments 1 and 2 were aggregated into a single reportableoperating 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.

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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]

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