Question
Your friend Joe invested bought shares in Big Inc a large manufacturing operations with direct operations in various industries. Joe received the Annual Report and
Your friend Joe invested bought shares in Big Inc a large manufacturing operations with direct operations in various industries. Joe received the Annual Report and he reached out for you needing assistance in the following matters.
Required
Part a 4 marks
The following data pertain to the industries in which operations were conducted for the year ended December 31, 2020. The numbers are all in thousands of Canadian Dollars.
| Industry | Revenues | Profits | Assets |
| ALEX | 25,000 | 1,650 | 10,000 |
| FAB | 4,000 | 1,400 | 2,500 |
| Wire | 16,000 | 350 | 500 |
| PACK | 3,000 | 550 | 1,500 |
| STRUCT | 13,333 | 675 | 10,000 |
| BARM | 2,600 | 225 | 1,400 |
| 63,933 | 4,850 | 25,900 |
According to IFRS, how many reportable segments does Big Inc. have? Show you calculations
Part b- 3 marks
I am so confused Why do I need all this information in part a? Explain to Joe briefly , what is segmented information and why is it relevant
Part c - 3 marks
Joe read recently a business article about the Notes to the financial statements and was wondering
- Are notes considered part of the financial statements?
- What basic purpose do they serve?
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