Question 1

US SFAS 131

Accepted Answer

A)  is very similar to the IAS 14 
B)  was created ten years before the IAS 14 
C)  concerns mergers and acquisitions 
D)  does not require sales information by segments 
A)  is very similar to the IAS 14 
B)  was created ten years before the IAS 14 
C)  concerns mergers and acquisitions 
D)  does not require sales information by segments A

Question 2

Segment identification is very easy in practice.

Accepted Answer

A) True 
 B)False  False

Question 3

Excessive costs of segmental disclosure has doubtful validity.

Accepted Answer

A) True 
 B)False  True

Question 4

The revised IAS 14 expands the scope of managerial discretion in segment identification.

Accepted Answer

A) True 
 B)False

Question 5

Segment information is

Accepted Answer

A)  very easy for MNEs to compute 
B)  useful because some users only want part of the MNE data 
C)  does not require cost allocations 
D)  does not concern transfer pricing 
A)  very easy for MNEs to compute 
B)  useful because some users only want part of the MNE data 
C)  does not require cost allocations 
D)  does not concern transfer pricing

Question 6

Evidence about stock market tests of segment information

Accepted Answer

A)  is presently subject to uncertainty 
B)  find no value to line of business disclosures 
C)  has yet to be produced 
D)  only applies to profits 
A)  is presently subject to uncertainty 
B)  find no value to line of business disclosures 
C)  has yet to be produced 
D)  only applies to profits

Question 7

Most corporations do not provide segment reponting

Accepted Answer

A)  for LOB information separately 
B)  for LOB information in matrix form 
C)  of sales data 
D)  identified by SIC 
A)  for LOB information separately 
B)  for LOB information in matrix form 
C)  of sales data 
D)  identified by SIC

Question 8

The demand for segment information has been

Accepted Answer

A)  prompted by a continuing diversification trend 
B)  forced by competitors 
C)  accelerated by class action suits 
D)  reduced by investors 
A)  prompted by a continuing diversification trend 
B)  forced by competitors 
C)  accelerated by class action suits 
D)  reduced by investors

Question 9

Current international accounting standards look to the company's organizational structure and internal reporting system as the basis for identifying segments.

Accepted Answer

A) True 
 B)False

Question 10

The major problem for an auditor of segment information:

Accepted Answer

A)  is that 50 percent of sales is not always sold externally. 
B)  is that sales and profits are given by line of business, but sales only for geographic segments. 
C)  is segment identification 
D)  is that profits are given by geographic area but not line of business. 
A)  is that 50 percent of sales is not always sold externally. 
B)  is that sales and profits are given by line of business, but sales only for geographic segments. 
C)  is segment identification 
D)  is that profits are given by geographic area but not line of business.

Question 11

The European Union requires the following segment information:

Accepted Answer

A)  sales and profits by line of business only. 
B)  sales and profits by line of business, but sales only for geographic segments. 
C)  sales by line of business and geographic area. 
D)  profits by geographic area but not line of business. 
A)  sales and profits by line of business only. 
B)  sales and profits by line of business, but sales only for geographic segments. 
C)  sales by line of business and geographic area. 
D)  profits by geographic area but not line of business.

Question 12

The dual-yardstick proposal for segment disclosures

Accepted Answer

A)  suggests that segments be established consistent with the company's organizational structure. 
B)  suggests that industry and country groupings be related to each other rather than an external standard. 
C)  requires geographic segmentation along country lines. 
D)  requires that geographic and industry data be combined together in a matrix reporting format. 
A)  suggests that segments be established consistent with the company's organizational structure. 
B)  suggests that industry and country groupings be related to each other rather than an external standard. 
C)  requires geographic segmentation along country lines. 
D)  requires that geographic and industry data be combined together in a matrix reporting format.

Question 13

Segment disclosure should not be expensive because of

Accepted Answer

A)  worldwide business activity 
B)  stock market analysts 
C)  resultant lower leverage 
D)  computer systems 
A)  worldwide business activity 
B)  stock market analysts 
C)  resultant lower leverage 
D)  computer systems

Question 14

A problem with segment disclosure is that

Accepted Answer

A)  IAS 14 has been rejected by MNEs 
B)  there are too many segments 
C)  segment reporting is only within the UK scope of the audit 
D)  management will be disclosing its own view of segments with significant differences in risk and return 
A)  IAS 14 has been rejected by MNEs 
B)  there are too many segments 
C)  segment reporting is only within the UK scope of the audit 
D)  management will be disclosing its own view of segments with significant differences in risk and return

Question 15

US SFAS 131 reportable segments may be reported on
I. Accounting-based risk measures formed from line of businesses
II. Accounting-based risk measures formed from geographical areas
III. A combination of I and II

Accepted Answer

A)  I only 
B)  II only 
C)  I and II 
D)  I, II and III 
A)  I only 
B)  II only 
C)  I and II 
D)  I, II and III

Question 16

Segment information

Accepted Answer

A)  I only 
B)  II only 
C)  neither I or II 
D)  both I and II 
A)  I only 
B)  II only 
C)  neither I or II 
D)  both I and II

Question 17

From a competitive standpoint, segment reporting

Accepted Answer

A)  is closer to a level playing field for single industry or single country firms. 
B)  does not create problems since most countries have similar reporting requirements. 
C)  creates a real cost of compiling, processing and disseminating information. 
D)  requires the disclosure of business dealings with major competitors. 
A)  is closer to a level playing field for single industry or single country firms. 
B)  does not create problems since most countries have similar reporting requirements. 
C)  creates a real cost of compiling, processing and disseminating information. 
D)  requires the disclosure of business dealings with major competitors.

Question 18

MNEs often make the argument against segment disclosure that

Accepted Answer

A)  economic efficiency will result 
B)  they will be put at a competitive disadvantage 
C)  there will be an affect on global comparative advantage 
D)  turnover rates will decrease 
A)  economic efficiency will result 
B)  they will be put at a competitive disadvantage 
C)  there will be an affect on global comparative advantage 
D)  turnover rates will decrease

Question 19

US GAAP's latest SFAS131 is very similar to IASB's revised IAS 14

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true concerning segment disclosures?

Accepted Answer

A)  The European Union requires sales but not profit data by segments. 
B)  Forecasts based on consolidated data are more accurate than those based on segmented data due to intercompany transfers. 
C)  The U.S. requires extensive social disclosures of its segmented data. 
D)  The British require segment sales based on source but not destination. 
A)  The European Union requires sales but not profit data by segments. 
B)  Forecasts based on consolidated data are more accurate than those based on segmented data due to intercompany transfers. 
C)  The U.S. requires extensive social disclosures of its segmented data. 
D)  The British require segment sales based on source but not destination.

US SFAS 131

Segment identification is very easy in practice.

Excessive costs of segmental disclosure has doubtful validity.

The revised IAS 14 expands the scope of managerial discretion in segment identification.

Segment information is

Evidence about stock market tests of segment information

Most corporations do not provide segment reponting

The demand for segment information has been

Current international accounting standards look to the company's organizational structure and internal reporting system as the basis for identifying segments.

The major problem for an auditor of segment information:

The European Union requires the following segment information:

The dual-yardstick proposal for segment disclosures

Segment disclosure should not be expensive because of

A problem with segment disclosure is that

US SFAS 131 reportable segments may be reported on I. Accounting-based risk measures formed from line of businesses II. Accounting-based risk measures formed from geographical areas III. A combination of I and II

Segment information

From a competitive standpoint, segment reporting

MNEs often make the argument against segment disclosure that

US GAAP's latest SFAS131 is very similar to IASB's revised IAS 14

Which of the following is true concerning segment disclosures?

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters

Exam 9: International Segment Reporting

US SFAS 131

Segment identification is very easy in practice.

Excessive costs of segmental disclosure has doubtful validity.

The revised IAS 14 expands the scope of managerial discretion in segment identification.

Segment information is

Evidence about stock market tests of segment information

Most corporations do not provide segment reponting

The demand for segment information has been

Current international accounting standards look to the company's organizational structure and internal reporting system as the basis for identifying segments.

The major problem for an auditor of segment information:

The European Union requires the following segment information:

The dual-yardstick proposal for segment disclosures

Segment disclosure should not be expensive because of

A problem with segment disclosure is that

US SFAS 131 reportable segments may be reported on I. Accounting-based risk measures formed from line of businesses II. Accounting-based risk measures formed from geographical areas III. A combination of I and II

Segment information

From a competitive standpoint, segment reporting

MNEs often make the argument against segment disclosure that

US GAAP's latest SFAS131 is very similar to IASB's revised IAS 14

Which of the following is true concerning segment disclosures?

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters