Exam 15: Segment and Interim Financial Reporting

GAAP requires that segment information be reported

What is the threshold for reporting a major customer?

For internal decision-making purposes,Elom Corporation's operating segments have been identified as follows: Corporate assets are typically allocated back evenly to the segments for internal analysis purposes. Required: 1.In applying the "asset" test to identify reporting segments,what is the test value for Elom Corporation? 2.Using the "asset" test,which of Elom's operating segments will also be reporting segments?

The following information was collected together for the Lawson Company relating to the preparation of their annual financial statements for 2011.For each item,indicate "yes" or "no" as to whether the item must be disclosed in the annual report. ________ 1.Names of major customers for all reportable segments ________ 2.Interest revenue and expense for all reportable segments ________ 3.Cost of Goods Sold for all reportable segments ________ 4.Depreciation expense and amortization expense for all reportable segments ________ 5.Revenue from external customers for all reportable segments ________ 6.The basis for aggregating any operating segments to arrive at reporting segments ________ 7.Income tax expense (or benefit)for all reportable segments ________ 8.Total assets for all reportable segments ________ 9.Type of product or service for all reportable segments ________ 10.Extraordinary items for all reportable segments

For internal decision-making purposes,Dashwood Corporation's operating segments have been identified as follows: Revenues of the segments are external,with the exception of tools,which sold $400,000 to other segments,and Appliances,which sold $200,000 to other segments. Required: 1.In applying the "revenue" test to identify reporting segments,what is the test value for Dashwood Corporation? 2.Using the "revenue" test,which of Dashwood's operating segments will also be reportable segments?

Osprin Corporation has three operating segments,as summarized below: Required: 1.Using the revenue test,what is the minimum amount of revenue of a reportable segment? 2.Using the operating profit or loss test,what is the minimum amount of operating profit or loss of a reportable segment? 3.Using the asset test,what is the minimum amount of assets of a reportable segment? 4.Based on the three tests,which segments will be separately reported?

What is the purpose of interim reporting?

For internal decision-making purposes,Calam Corporation's operating segments have been identified as follows: Required: 1.In applying the "operating profit or loss" test to identify reporting segments,what is the test value for Calam Corporation? 2.Using the "reported profit or loss" test,which of Calam's operating segments will also be reporting segments?

Rollins Publishing has five operating segments,as summarized below: Required: Determine which of the operating segments of Rollins Publishing are reportable segments for the period shown.

Cole Company has the following 2014 financial data: Cole Company should add segments if

The following table is provided in the disclosures for interim reporting by Bigg Company,regarding the location of their assets. Based on the table,which of the following statements is true?

Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?

An enterprise has eight reporting segments.Five segments show an operating profit and three segments show an operating loss.In determining which segments are classified as reporting segments under the operating profits test,which of the following statements is correct?

Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals?

For internal decision-making purposes,Falcon Corporation identifies its industry segments by geographical area.For 2014,the total revenues of each segment are provided below.There are no intersegment revenues. Required: 1.Which operating segments will be considered reporting segments based on the revenue test? 2.What is the test value for determining whether a sufficient number of segments are reported? 3.What will be the minimum number of segments that must be reported?

The estimated taxable income for Shebill Corporation on January 1,2014,was $80,000,$100,000,$100,000,and $120,000,respectively,for each of the four quarters of 2014.Shebill's estimated annual effective tax rate was 30%.During the second quarter of 2014,the estimated annual effective tax rate was increased to 34%.Given only this information,Shebill's second quarter income tax expense was

Jeale Corporation is preparing its interim financial statements for the third quarter of calendar 2014.The following information was provided for the preparation of the statements: Additional information: At the end of the year,Jeale accrues its annual pension and depreciation expenses which amount to $60,000 and $42,000,respectively. Required: Prepare Jeale's interim income statement for the third quarter of calendar 2014.

The following data relate to Falcon Corporation's industry segments: Required: 1.Which of Falcon's operating segments would be considered reporting segments under the "revenue" test? 2.Which of Falcon's operating segments would be considered reporting segments under the "asset" test?