Question 1

Under IFRS 8, entities are required to provide reconciliations on the followings, except for:

Accepted Answer

A)  the total of the reportable segment's measures of profit and loss to the entity's profit or loss; 
B)  the total of the reportable segment's equity to the entity's equity; 
C)  the total of the reportable segment's revenue to the entity's revenue; 
D)  the total of the reportable segment's liabilities to the entity's liabilities; 
A)  the total of the reportable segment's measures of profit and loss to the entity's profit or loss; 
B)  the total of the reportable segment's equity to the entity's equity; 
C)  the total of the reportable segment's revenue to the entity's revenue; 
D)  the total of the reportable segment's liabilities to the entity's liabilities; B

Question 2

Cherry Group has operating segments in three different locations. Total assets for each segment are as follows: 
$\bullet$Melbourne $400 000
$\bullet$Sydney $80 000
$\bullet$Adelaide $20 000
Which operating segment(s) should be disclosed as reportable segment(s) of Cherry Group?

Accepted Answer

A)  All segments are reportable segments; 
B)  Melbourne and Sydney are the only reportable segments; 
C)  Sydney and Adelaide are the only reportable segments; 
D)  Melbourne is the only reportable segment. 
A)  All segments are reportable segments; 
B)  Melbourne and Sydney are the only reportable segments; 
C)  Sydney and Adelaide are the only reportable segments; 
D)  Melbourne is the only reportable segment. D

Question 3

IFRS 8 Operating Segments applies to: 
I. public companies
II) listed entities
III) entities in the process of listing
IV) any entity who voluntarily chooses to apply it

Accepted Answer

A)  I, II and III only; 
B)  II, III and IV only; 
C)  I, II and IV only; 
D)  I, III and IV only. 
A)  I, II and III only; 
B)  II, III and IV only; 
C)  I, II and IV only; 
D)  I, III and IV only. B

Question 4

One of the conditions used to determine if two or more operating segments may be aggregated into a single operating segment is:

Accepted Answer

A)  the segments have the same manager in charge; 
B)  the aggregation is deemed to provide useful information for users; 
C)  the segments have similar operating results; 
D)  the segments have similar methods used to distribute their product or provide their services. 
A)  the segments have the same manager in charge; 
B)  the aggregation is deemed to provide useful information for users; 
C)  the segments have similar operating results; 
D)  the segments have similar methods used to distribute their product or provide their services.

Question 5

IFRS 8 Operating Segments is primarily a:

Accepted Answer

A)  disclosure standard; 
B)  measurement standard; 
C)  definition standard; 
D)  conceptual standard. 
A)  disclosure standard; 
B)  measurement standard; 
C)  definition standard; 
D)  conceptual standard.

Question 6

Assuming the three business units below are operating segments and all revenue earned are from external customers, in which of the following scenarios does Colourband Ltd need to identify another reportable segment to be disclosed? $\begin{array}{|r|r|r|r|r|r|r|}
\hline \text { Revenue }\ln \$ 000&\text { Red }&\text { Blue }&\text { Green }&\begin{array}{c}
\text { Total operating } \
\text { segments }
\end{array} & \begin{array}{c}
\text { Other } \
\text { business } \
\text { units }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Colourband } \
\text { Ltd }
\end{array} \

\hline \text { I. } & 75 & 160 & 320 & 555 & 250 & 805 \
\hline \text { II. } & 110 & 140 & 275 & 525 & 175 & 700 \
\hline \text { III. } & 230 & 250 & 375 & 855 & 315 & 1170 \
\hline
\end{array}$

Accepted Answer

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

Question 7

Based on the information provided below, which business unit(s) should be identified as TeeVee Ltd's operating segment(s)? $$\begin{array} { | l | l | l | l | } 
\hline & \text { Glee } & \text { Homeland } & \text { CSI } \
\hline \begin{array} { l } 
\text { Can the component generate revenue and incur expenses from its } \
\text { business activities? }
\end{array} & \text { Yes } & \text { Yes } & \text { Yes } \
\hline \begin{array} { l } 
\text { Are the component's operating results regularly reviewed by the } \
\text { CODM? }
\end{array} & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { ls discrete financial information available for the component? } & \text { No } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Accepted Answer

A)  Glee only; 
B)  Homeland only; 
C)  CSI only; 
D)  Glee and CSI. 
A)  Glee only; 
B)  Homeland only; 
C)  CSI only; 
D)  Glee and CSI.

Question 8

IFRS 8 requires disclosure in relation to which of the following?

Accepted Answer

A)  the basis of accounting for all segments; 
B)  the nature of any difference between the measurement of the reportable segments' revenue and the entity's revenue; 
C)  the nature of any difference between the measurement of the reportable segments' assets and liabilities and the entity's assets and liabilities; 
D)  the nature and effect of all symmetrical allocations to reportable segments. 
A)  the basis of accounting for all segments; 
B)  the nature of any difference between the measurement of the reportable segments' revenue and the entity's revenue; 
C)  the nature of any difference between the measurement of the reportable segments' assets and liabilities and the entity's assets and liabilities; 
D)  the nature and effect of all symmetrical allocations to reportable segments.

Question 9

A key objective of providing financial reporting information by segment is:

Accepted Answer

A)  to allow detailed analysis to be undertaken by users such as segment profit margin analysis; 
B)  to allow the user to better understand the entity's future performance; 
C)  to highlight poorly performing areas of an entity's business to users; 
D)  to allow users to better assess the entity's risks and returns. 
A)  to allow detailed analysis to be undertaken by users such as segment profit margin analysis; 
B)  to allow the user to better understand the entity's future performance; 
C)  to highlight poorly performing areas of an entity's business to users; 
D)  to allow users to better assess the entity's risks and returns.

Question 10

IFRS 8 prescribes that an operating segment must be identified on the basis of: Leaning Objective 18.4 Briefly compare IFRS 8 with its predecessor standard IAS 14.

Accepted Answer

A)  geographic location; 
B)  predominant sources of risks and returns; 
C)  the way information is reported internally to the CODM; 
D)  the usefulness of financial information available to users. 
A)  geographic location; 
B)  predominant sources of risks and returns; 
C)  the way information is reported internally to the CODM; 
D)  the usefulness of financial information available to users.

Question 11

If an entity presents both consolidated financial statements and parent entity financial statements in the same financial report, it must present:

Accepted Answer

A)  segment data only on the basis of the parent entity financial statements; 
B)  segment data only on the basis of the consolidated financial statements; 
C)  condensed segment data that includes revenue information only; 
D)  segment information on the basis of both the consolidated and the parent financial information. 
A)  segment data only on the basis of the parent entity financial statements; 
B)  segment data only on the basis of the consolidated financial statements; 
C)  condensed segment data that includes revenue information only; 
D)  segment information on the basis of both the consolidated and the parent financial information.

Question 12

If an operating segment does not meet all of the thresholds of significance, it:

Accepted Answer

A)  may not be designated as a reportable segment; 
B)  may still be designated as a reportable segment; 
C)  must be combined with the largest of the other segments and reported in aggregate; 
D)  is insignificant and cannot be reported separately. 
A)  may not be designated as a reportable segment; 
B)  may still be designated as a reportable segment; 
C)  must be combined with the largest of the other segments and reported in aggregate; 
D)  is insignificant and cannot be reported separately.

Question 13

Segment disclosures are designed to:

Accepted Answer

A)  combine components of consolidated financial data to provide a higher level of summarisation; 
B)  condense particular items of consolidated financial data into one financial statement; 
C)  disaggregate selected consolidated financial data; 
D)  aggregate revenues and expenses so that only net profit is shown for each important segment. 
A)  combine components of consolidated financial data to provide a higher level of summarisation; 
B)  condense particular items of consolidated financial data into one financial statement; 
C)  disaggregate selected consolidated financial data; 
D)  aggregate revenues and expenses so that only net profit is shown for each important segment.

Question 14

Additional segments must be identified as reportable segments until at least:

Accepted Answer

A)  75% of total entity revenue is included in reportable segments; 
B)  75% of total entity assets are included in reportable segments; 
C)  75% of total entity liabilities are included in reportable segments; 
D)  75% of total entity equity is included in reportable segments. 
A)  75% of total entity revenue is included in reportable segments; 
B)  75% of total entity assets are included in reportable segments; 
C)  75% of total entity liabilities are included in reportable segments; 
D)  75% of total entity equity is included in reportable segments.

Question 15

For financial reporting periods commencing prior to 1 January 2009, the accounting standard relating to segment reporting was:

Accepted Answer

A)  IFRS 8 Operating Segments; 
B)  IAS 14 Segment Reporting; 
C)  IAS 14 Operating Segments; 
D)  IFRS 8 Segment Reporting. 
A)  IFRS 8 Operating Segments; 
B)  IAS 14 Segment Reporting; 
C)  IAS 14 Operating Segments; 
D)  IFRS 8 Segment Reporting.

Question 16

Which of the following statements is incorrect? IFRS 8 requires external revenue by product to be disclosed on an entity wide basis by all entities to which IFRS 8 applies:

Accepted Answer

A)  unless the information has already been provided as part of the reportable segment information; 
B)  unless the information is not available and the cost to develop it would be excessive; 
C)  and must be calculated based on the financial information used to produce the entity's financial statements; 
D)  unless providing such information would be considered to damage the entity's competitive advantage. 
A)  unless the information has already been provided as part of the reportable segment information; 
B)  unless the information is not available and the cost to develop it would be excessive; 
C)  and must be calculated based on the financial information used to produce the entity's financial statements; 
D)  unless providing such information would be considered to damage the entity's competitive advantage.

Question 17

Huey, Dewey, and Louie are the three operating segments of Donald Company. Which of the following statements is correct based on the information provided below? $\begin{array}{|l|r|r|r|r|r|r|}
\hline\ln \$ 000&\text { Huey }&\text { Dewey }&\text { Louie }&\begin{array}{c}
\text { Total } \
\text { operating } \
\text { segments }
\end{array} & \begin{array}{c}
\text { Other } \
\text { business } \
\text { units }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Donald } \
\text { Company }
\end{array} \
\hline \text { Revenue } & 275 & 130 & 410 & 815 & 295 & 1110 \
\hline \text { Profit/loss } & 100 & 30 & 185 & 315 & 60 & 375 \
\hline \text { Assets } & 355 & 215 & 750 & 1320 & 310 & 1630 \
\hline
\end{array}$

Accepted Answer

A)  Huey, Dewey, and Louie are reportable segments of Donald Company. 
B)  Only Dewey and Louie should be disclosed as reportable segments. 
C)  Dewey is not a reportable segment as it does not satisfy the profit/loss quantitative threshold. 
D)  Donald Company needs to identify another reportable segment from 'other business units' component. 
A)  Huey, Dewey, and Louie are reportable segments of Donald Company. 
B)  Only Dewey and Louie should be disclosed as reportable segments. 
C)  Dewey is not a reportable segment as it does not satisfy the profit/loss quantitative threshold. 
D)  Donald Company needs to identify another reportable segment from 'other business units' component.

Question 18

What is the reasonable maximum number of an entity's reportable segments according to the additional guidance provided in IFRS 8?

Accepted Answer

A)  8; 
B)  10; 
C)  12; 
D)  There is no maximum number provided in the guidance. 
A)  8; 
B)  10; 
C)  12; 
D)  There is no maximum number provided in the guidance.

Question 19

Under IFRS 8, two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of the standard, the segments have similar economic characteristics, and the segments are similar in each of the following respects: I.$\quad$the nature of the production processes
II.$\quad$the markets in which the products are sold are 
$\quad$closely related
III.$\quad$the type or class of customer for their products and 
$\quad$services
IV.$\quad$the nature of the requlatory environment

Accepted Answer

A)  I, II and III only; 
B)  I, III and IV only; 
C)  I, II and IV only; 
D)  II, III and IV only. 
A)  I, II and III only; 
B)  I, III and IV only; 
C)  I, II and IV only; 
D)  II, III and IV only.

Question 20

Segments that do not satisfy the requirements of a reportable segment must:

Accepted Answer

A)  not be disclosed at all in the financial report; 
B)  be reported in the notes to the financial statements; 
C)  be combined and disclosed as 'all other segments'; 
D)  be combined with the smallest reportable segment. 
A)  not be disclosed at all in the financial report; 
B)  be reported in the notes to the financial statements; 
C)  be combined and disclosed as 'all other segments'; 
D)  be combined with the smallest reportable segment.

Exam 14: Operating Segments

Under IFRS 8, entities are required to provide reconciliations on the followings, except for:

Cherry Group has operating segments in three different locations. Total assets for each segment are as follows: ∙\bullet∙ Melbourne $400 000 ∙\bullet∙ Sydney $80 000 ∙\bullet∙ Adelaide $20 000 Which operating segment(s) should be disclosed as reportable segment(s) of Cherry Group?

IFRS 8 Operating Segments applies to: I. public companies II) listed entities III) entities in the process of listing IV) any entity who voluntarily chooses to apply it

One of the conditions used to determine if two or more operating segments may be aggregated into a single operating segment is:

IFRS 8 Operating Segments is primarily a:

IFRS 8 requires disclosure in relation to which of the following?

A key objective of providing financial reporting information by segment is:

IFRS 8 prescribes that an operating segment must be identified on the basis of: Leaning Objective 18.4 Briefly compare IFRS 8 with its predecessor standard IAS 14.

If an entity presents both consolidated financial statements and parent entity financial statements in the same financial report, it must present:

If an operating segment does not meet all of the thresholds of significance, it:

Segment disclosures are designed to:

Additional segments must be identified as reportable segments until at least:

For financial reporting periods commencing prior to 1 January 2009, the accounting standard relating to segment reporting was:

Which of the following statements is incorrect? IFRS 8 requires external revenue by product to be disclosed on an entity wide basis by all entities to which IFRS 8 applies:

What is the reasonable maximum number of an entity's reportable segments according to the additional guidance provided in IFRS 8?

Segments that do not satisfy the requirements of a reportable segment must:

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters

Cherry Group has operating segments in three different locations. Total assets for each segment are as follows: $\bullet$ Melbourne $400 000 $\bullet$ Sydney $80 000 $\bullet$ Adelaide $20 000 Which operating segment(s) should be disclosed as reportable segment(s) of Cherry Group?