Question
The Alec Limited Group conducts its business operations in various regions of the world. The regions listed below submit separate internal reports to company management
The Alec Limited Group conducts its business operations in various regions of the world. The regions listed below submit separate internal reports to company management for purposes of performance evaluation and resource allocation. The table below lists some of the details of the regions for the year ended 31 December 2019.
Revenue Profit or (Loss) $000 Segment Assets $000 Segment Liabilities $000 External $000 Internal $000
Northern Europe 20,000 0 5,000 15,000 4,000 Southern Europe 2,000 5,000 2,150 8,000 1,000 Eastern Europe 3,000 0 1,000 4,000 2,200 Western Europe 750 1,250 50 800 500 Central Asia 600 0 200 2,500 1,500 Southeast Asia 4,000 0 (100) 2,000 1,100 East Asia 4,000 0 500 2,000 900 South Asia 100 4,900 (200) 1,800 800 Western Asia 0 4,300 80 5,200 3,900 Total 34,450 15,450 8,680 41,300 15,900
Required:
Which are the segments to be reported separately and why is it so?
For those not identify above as reporting segments, why is it so?
As per SFRS(1)8 operating segments for identifying reportable segments, comment and critique on the approach.
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