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SDR Berhad is a public listed company primarily involved in palm oil industries. SDR Berhad is the leading palm oil producer in terms of world

  1. SDR Berhad is a public listed company primarily involved in palm oil industries. SDR Berhad is the leading palm oil producer in terms of world market capitalization. SDR Berhad operates the palm oil in Malaysia, Indonesia and Thailand. The world's primary palm oil producers are Indonesia and Malaysia, followed by Thailand.

Further, the Chief Executive Officer of SDR Berhad plans to report the three countries as the reportable segments. As SDR Berhad is one of the biggest producers and exporters of palm oil and palm oil products in the world. Moreover, the palm oil industry is one of the leading industry that contribute to the ASEAN economy.

The information of sales, profit and assets percentage based on palm oil operation by countries for the year ended 31 December 2020 is as follows:

image text in transcribed

  1. Discuss the requirements of the MFRS 8 Operating Segments in identifying the reportable segments.

(2 Marks)

  1. Explain whether the CEO of SDR Berhad is able to have THREE (3) reportable segments in the operating segment report of the company.

(3 Marks)

Sales Profit Assets Malaysia 65% 50% 55% Country Indonesia 30% 46% 42% Thailand 5% 4% 3%

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