PART B: 50% Question 1 In its annual financial statements for the year ended 31 March 20X3, Verge, 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 has disclosed two reported components. Phases 1 and 2 are grouped into one reportable segment. Active segments 1 and 2 are grouped together on the basis of their common business characteristics, as well as the type of products and services they offer. In the local railway market, it is the local transport authority that rewards the contract and pays Verge for its services. At the local railway market, contracts are awarded following a competitive bidding process, and passenger prices are set and paid by the transportation authority. In the inter-city train market, prices are set by Verge and passengers pay Verge for the service provided. Required: Advise Verge on how the above accounting issues should be dealt with in its financial statements according to IFRS-8 Segment Reporting. (10 marks)