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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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