Question
An entity manufactures suits, clothing, bed linen, and various cotton and manmade fiber products. It has several segments, which are reported internally as Segment
An entity manufactures suits, clothing, bed linen, and various cotton and manmade fiber products. It has several segments, which are reported internally as
Segment | |||
Segments | Sales | Profit | assets |
Suits | 40% | 45% | 50% |
Shirts | 30% | 35% | 33% |
Bed linen | 15% | 10% | 7% |
Blinds | 8% | 6% | 5% |
Cloth | 7% | 4% | 5% |
100% | 100% | 100% |
The table represents the percentages of sales, profit, and segment assets that are attributable to the different segments. The entity wants to present bed linen and cloth as a single segment but is wondering whether the information can be aggregated. How will the segmental information be presented in the financial statements? Explain
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Get StartedRecommended Textbook for
Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
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