Question
The Chief Operating Decision Maker (CODM) of Biskit Pty Ltd share the following information reported to him by several segments of its subsidiary for the
The Chief Operating Decision Maker (CODM) of Biskit Pty Ltd share the following information reported to him by several segments of its subsidiary for the year ended 31 December 2021:
Sales Profit Loss Assets
P P P P
Cookies 350 000 150 000 - 250 000
Chocolates 250 000 - 175 000 500 000
Nuts 1,150 000 - 500 000 750 000
Croissants 450 000 - 225 000 300 000
Danish 400 000 100 000 - 500 000
Rusks 2 000 000 1 350 000 - 500 000
4 600 000 1 600 000 900 000 2 800 000
a. Required:
From the above information indicate in line with IFRS 8 which segments will be reportable in quantitative thresholds. (5 marks)
b. Reconciliation Note
The CODM supplied further information extracted from the accounting records of Biskit Pty Ltd for the year ended 31 December 2021.
Cookies Segment Chocolates Segment Head Office
P P P
Sales 5,325,000 6,200,000 -
Profit/(loss) before tax 2,783,000 3,062,000 (316,500)
Income tax expense (737,100) (857) 88,620
Profit/(loss) after tax 2,045,900 2,204,640 (227,880)
Note: Information of Cookies and Chocolates segments is to be disclosed
1) Chocolates segment sold goods to the value of P250 000 to Cookies Segment.
2) Cookies Segment sold all the goods to external customers and therefore had no stock on hand
3) Profit of Cookies Segment includes a dividend received from Chocolates Segment of P150 000
4) Profit of Cookies Segment includes interest paid on loan from Chocolates Segment of P25 000. Chocolates Segment accounted for P25 000 as interest received.
The following is an extract form the financial statements of Biskit Pty Ltd
P
Income 11,025,000
Profit before tax 5,378,000
Income tax expense 1,505,840
Profit after tax 3,872,160
Required:
Using IFRS 8 requirements prepare the segment information of Biskit Pty Ltd as it would appear in the notes for the year ended 31 December 2021.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started