Question 1

A segment which does not reach any of the materiality thresholds can nevertheless be:

Accepted Answer

A)  designated as a reportable segment 
B)  combined with other segments 
C)  not reported separately 
D)  all of the above 
A)  designated as a reportable segment 
B)  combined with other segments 
C)  not reported separately 
D)  all of the above

Question 2

The definition of operating segments requires recognition of components of the entity that:

Accepted Answer

A)  are cost centres 
B)  are production units 
C)  have similar gross margins 
D)  none of the above 
A)  are cost centres 
B)  are production units 
C)  have similar gross margins 
D)  none of the above

Question 3

Operating segments may only be combined if they have similar economic characteristics

Accepted Answer

A) True 
 B)False

Question 4

Disclosure of segment information includes the following categories:

Accepted Answer

A)  general information 
B)  information about profit or loss 
C)  information about assets and liabilities 
D)  all of the above 
A)  general information 
B)  information about profit or loss 
C)  information about assets and liabilities 
D)  all of the above

Question 5

Based on the business segments determined to be reportable segments for reporting to the Board each month, the following data have been derived from the notes attached to the subsidiary financial statements (amounts in thousands):
  
-On the basis of revenue,asset and results,the reportable business segments are:

Accepted Answer

A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above. 
A)  Piebalds, Pintos and Crillos. 
B)  Piebalds, Skewbalds, Pintos and Crillos. 
C)  Piebalds, Skwsbalds, Pintos, Crillos and Others. 
D)  None of the above.

Question 6

A diversified group is one that operates in markets that:

Accepted Answer

A)  have different rates of profitability 
B)  have different opportunities for growth 
C)  have different degrees of risk 
D)  all of the above 
A)  have different rates of profitability 
B)  have different opportunities for growth 
C)  have different degrees of risk 
D)  all of the above

Question 7

An immaterial segment is never disclosed despite the 75% rule.

Accepted Answer

A) True 
 B)False

A segment which does not reach any of the materiality thresholds can nevertheless be:

The definition of operating segments requires recognition of components of the entity that:

Operating segments may only be combined if they have similar economic characteristics

Disclosure of segment information includes the following categories:

A diversified group is one that operates in markets that:

An immaterial segment is never disclosed despite the 75% rule.

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Filters

Exam 11: Segment Reporting by Diversified Entities

A segment which does not reach any of the materiality thresholds can nevertheless be:

The definition of operating segments requires recognition of components of the entity that:

Operating segments may only be combined if they have similar economic characteristics

Disclosure of segment information includes the following categories:

A diversified group is one that operates in markets that:

An immaterial segment is never disclosed despite the 75% rule.

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Filters