Question
The internal reports of Caf Ltd reveal the following divisional information (in $000): Segment revenue Segment profit/(loss) Segment assets Coffee 420 30 110 Cakes 50
The internal reports of Caf Ltd reveal the following divisional information (in $000):
|
| Segment revenue | Segment profit/(loss) | Segment assets |
| Coffee | 420 | 30 | 110 |
| Cakes | 50 | 2 | 15 |
| Water | 60 | (20) | 40 |
| Fruit | 15 | (40) | 45 |
| Total | 545 | (28) | 210 |
Use the materiality criterion in AASB 8 Operating Segments to determine which of the divisions are
reporting business segments. Show all supporting information clearly identifying why.
| Division | Reporting Segment? (Yes or No) | Reason |
| Coffee | YES | All segments of coffee is reportable as satisfy 10% or more.
|
| Cakes | NO | All segments cakes are not reportable as it doesnt satisfy 10% or more |
| Water | YES | All segments of water is reportable as satisfy 10% or more. |
| Fruit | YES | Revenue segment of Fruit is not reportable but Assets and Total Absolute Profit / Loss segment is reportable as satisfy 10% or more |
Supporting workings and reasoning:
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Cima Official Exam Practice Kit Fundamentals Of Ethics Corporate Governance And Business Law Certificate In Business Accounting
Authors: Larry Mead
4th Edition
1856177092, 978-1856177092
