Faulk Ltd. has provided the following information: \[\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { Assets } & \text { Revenues } & \text { Profits } \\ \hline \text { A } & \$ 60,000 & \$ 18,000 & \$ 9,000 \\ \hline \text { B } & 120,000 & 90,000 & 3,000 \\ \hline \text { C } & 120,000 & 52,500 & 15,000 \\ \hline \text { D } & 30,000 & 300,000 & 120,000 \\ \hline \end{array}\] - Under the revenue test only, which segments are reportable?

A) Segments A and C only B) Segments B and D only C) Segments B, C, and D only D) All the segments are reportable. A) Segments A and C only B) Segments B and D only C) Segments B, C, and D only D) All the segments are reportable.

The controller of Getaway Corporation has prepared and summarized the following information for her company (all in millions of $): \[\begin{array} { | l | r | r | r | r | } \hline& \text { External sales } & \begin{array} { r } \text { Inter-segment } \\ \text { sales } \end{array} & \begin{array} { r } \text { Operating } \\ \text { profit (loss) } \end{array} & \text { Total assets } \\ \hline \text { Hotels } & 975 & & 89 & 1,050 \\ \hline \text { Car rentals } & 512 & & 65 & 642 \\ \hline \text { Guided tours } & 205 & & ( 25 ) & 221 \\ \hline \text { Bus tours } & 173 & 100 & 11 & 250 \\ \hline \text { Cruises } & \underline { 98 } & \underline { 50 } & \underline { ( 15 ) } & \underline { 95 } \\ \hline \text { Total } & \underline { 1,963 } & \underline { 150 } & \underline { 125 } & \underline { 2,258 } \\ \hline \end{array}\] Required: Identify which segments are reportable. Also discuss any ethical issues related to reporting of segmented information.

(All discussion in millions of dollars.)

Faulk Ltd. has provided the following information: \[\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { Assets } & \text { Revenues } & \text { Profits } \\ \hline \text { A } & \$ 60,000 & \$ 18,000 & \$ 9,000 \\ \hline \text { B } & 120,000 & 90,000 & 3,000 \\ \hline \text { C } & 120,000 & 52,500 & 15,000 \\ \hline \text { D } & 30,000 & 300,000 & 120,000 \\ \hline \end{array}\] -Using all the applicable tests, which segments are reportable?

A) Segments B and C only B) Segments B, C, and D only C) Segment D only D) All the segments are reportable. A) Segments B and C only B) Segments B, C, and D only C) Segment D only D) All the segments are reportable.

The following information on sales is available for the company's three operating segments: \[\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { International Sales } & \text { External Sales } & \text { Total Sales } \\ \hline \mathrm { A } & \$ 60,000 & \$ 300,000 & \$ 360,000 \\ \hline \mathrm { B } & 200,000 & 10,000 & 210,000 \\ \hline \mathrm { C } & & \underline { 1,500,000 } & \underline { 1,500,000 } \\ \hline & \$ 260,000 & \$ 1,810,000 & \$ 2,070,000 \\ \hline \end{array}\] Which of the operating segments must be reported separately?

A) Only Segment C B) Only Segments B and C C) Only Segments A and C D) Segments A, B, and C A) Only Segment C B) Only Segments B and C C) Only Segments A and C D) Segments A, B, and C

Faulk Ltd. has provided the following information: \[\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { Assets } & \text { Revenues } & \text { Profits } \\ \hline \text { A } & \$ 60,000 & \$ 18,000 & \$ 9,000 \\ \hline \text { B } & 120,000 & 90,000 & 3,000 \\ \hline \text { C } & 120,000 & 52,500 & 15,000 \\ \hline \text { D } & 30,000 & 300,000 & 120,000 \\ \hline \end{array}\] - Under the profit test only, which segments are reportable?

A) Segment A only B) Segment C only C) Segments A and C only D) Segments C and D only A) Segment A only B) Segment C only C) Segments A and C only D) Segments C and D only

Exam 7: Segment and Interim Reporting

At least 75% of an organization's consolidated external revenues are disclosed by separate operating segments. The remaining segments do not meet any of the reportable segment thresholds. Which of the following is true about the remaining segments?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

D

What is the main objective in disclosing segmented information?

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

B

The Alfred Company has operations in several international regions. These regions reported the following information: Segment Revenues Profit Assets A \ 3,500 \ 600 \ 9,000 B 4,000 300 6,000 C 1,100 (200) 2,400 D 2,800 300 10,400 E 1,400 100 2,000 \1 2,800 \1 ,100 \2 9,800 Which of these segments are reportable? Fully document all supporting calculations.

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(Essay)

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Question 3

Correct Answer:

Verified

Revenue test
Threshold $12,800 × 10% = $1,280
$\text { Reportable segments } \quad A , B , D , E$ Profits test
Threshold $1,100 × 10% = $110
$\text { Reportable segments } \quad \text { A, E, C, D }$ Assets test
Threshold $29,800 × 10% = $2,980
$\text { Reportable segments } \quad A , B , D$ Therefore, all segments must be reported separately as each segment qualifies under one or more of the threshold tests.

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations. Why are these disclosures required?

(Multiple Choice)

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Question 4

What is the difference between the way taxes are treated under the discreet approach and under the integral approach?

(Multiple Choice)

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Question 5

Under IAS 34, which of the following costs is not viewed as a constructive obligation?

(Multiple Choice)

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Question 6

Which of the following is not a threshold for identifying a reportable segment?

(Multiple Choice)

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Question 7

Which of the following statements about interim financial statements for public companies is true?

(Multiple Choice)

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Question 8

The thresholds for segmental financial reporting exclude ________.

(Multiple Choice)

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Question 9

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 - Under the revenue test only, which segments are reportable?

(Multiple Choice)

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Question 10

There is certain information that reportable segments are required to disclose only if that information is regularly reviewed by the chief operating decision-maker. Which of the following must be disclosed even if it is not regularly reviewed by the chief operating decision-maker?

(Multiple Choice)

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Question 11

The controller of Getaway Corporation has prepared and summarized the following information for her company (all in millions of $): External sales Inter-segment sales Operating profit (loss) Total assets Hotels 975 89 1,050 Car rentals 512 65 642 Guided tours 205 (25) 221 Bus tours 173 100 11 250 Cruises Total Required: Identify which segments are reportable. Also discuss any ethical issues related to reporting of segmented information.

(Essay)

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Question 12

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 -Using all the applicable tests, which segments are reportable?

(Multiple Choice)

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Question 13

With respect to interim financial statements, which of the following is not dictated by IFRS?

(Multiple Choice)

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Question 14

HB Company is a private company with a significant amount of long-term debt. The company reports under IFRS. One of the conditions of the debt-financing indenture is that it must provide quarterly financial statements to the lender. HB pays tax at the rate of 20% on the first $200,000 of income and 40% on any income in excess of $200,000. During 20X5, the company earned $500,000 and paid tax at an average rate of 32%. Similar results were expected for 20X6. HB realized the following actual results for the year ended December 31, 20X6 (in thousands): Quarter Income (loss) 1 \ 100 2 (150) 3 200 4 400 Required: Calculate income tax expense (recovery)for each quarter in 20X6 and for the year in total under the: a. discreet approach b. integral approach

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Question 15

Which of the following is not an aspect in identifying an operating segment?

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Question 16

During the first quarter of the company's fiscal year, HA Inc. paid $100,000 to an arbitrator, who assisted in negotiating an end to a strike by factory workers, and $200,000 for annual property taxes. How much of these costs should be expensed in the first quarter under the discreet approach and under the integral approach?

(Multiple Choice)

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Question 17

The following information on sales is available for the company's three operating segments: Segment International Sales External Sales Total Sales \ 60,000 \ 300,000 \ 360,000 200,000 10,000 210,000 \ 260,000 \ 1,810,000 \ 2,070,000 Which of the operating segments must be reported separately?

(Multiple Choice)

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Question 18

In practice, most companies use the discreet approach in preparing their internal interim financial statements. Which of the following costs is usually not included in the financial statements?

(Multiple Choice)

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Question 19

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 - Under the profit test only, which segments are reportable?

(Multiple Choice)

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Question 20

At least 75% of an organization's consolidated external revenues are disclosed by separate operating segments. The remaining segments do not meet any of the reportable segment thresholds. Which of the following is true about the remaining segments?

What is the main objective in disclosing segmented information?

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations. Why are these disclosures required?

What is the difference between the way taxes are treated under the discreet approach and under the integral approach?

Under IAS 34, which of the following costs is not viewed as a constructive obligation?

Which of the following is not a threshold for identifying a reportable segment?

Which of the following statements about interim financial statements for public companies is true?

The thresholds for segmental financial reporting exclude ________.

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 - Under the revenue test only, which segments are reportable?

There is certain information that reportable segments are required to disclose only if that information is regularly reviewed by the chief operating decision-maker. Which of the following must be disclosed even if it is not regularly reviewed by the chief operating decision-maker?

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 -Using all the applicable tests, which segments are reportable?

With respect to interim financial statements, which of the following is not dictated by IFRS?

Which of the following is not an aspect in identifying an operating segment?

The following information on sales is available for the company's three operating segments: Segment International Sales External Sales Total Sales \ 60,000 \ 300,000 \ 360,000 200,000 10,000 210,000 \ 260,000 \ 1,810,000 \ 2,070,000 Which of the operating segments must be reported separately?

In practice, most companies use the discreet approach in preparing their internal interim financial statements. Which of the following costs is usually not included in the financial statements?

Faulk Ltd. has provided the following information: Segment Assets Revenues Profits A \ 60,000 \ 18,000 \ 9,000 B 120,000 90,000 3,000 C 120,000 52,500 15,000 D 30,000 300,000 120,000 - Under the profit test only, which segments are reportable?

Setting the Stage

Intercorporate Equity Investments: an Introduction

Business Combinations

Appendix A: AIncome Tax Allocation

Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix A: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix B: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Consolidation of Non-Wholly Owned Subsidiaries

Appendix A: Step Purchases

Appendix B: Decreases in Ownership Interest

Subsequent-Year Consolidations: General Approach

Appendix A: Preferred and Restricted Shares of Investee Corporation

Appendix B: Intercompany Bond Holdings

Foreign Currency Transactions and Hedges

Reporting Foreign Operations

Financial Reporting for Not-For-Profit Organizations

Appendix A: Fund Accounting

Public Sector Financial Reporting

Filters