Day Ltd is a listed diversified retail company. Its stores are located mainly in Australia. It has three main types of stores: furniture stores, electrical goods stores and homeware stores. Each of these stores has different products, customer types and distribution processes. In accordance with AASB 8/IFRS 8, Day Ltd has identified three operating segments: furniture stores, electrical goods stores and homeware stores.

All three business units earn most of their revenue from external customers. Total consolidated revenue of Day Ltd is $600 million.

	Furniture stores $m	Electrical goods stores $m	Homeware stores $m	All segments $m
Revenue	400	100	50	550
Segment result (profit)	15	7	4	26
Assets	900	200	100	1 200

Required

Discuss the rules for identifying reportable segments. Identify Day Ltds reportable segments in accordance with AASB 8/IFRS 8. Explain your answer.