The key decision points in identifying an entity's component as an operating segment include all the following criteria, except for:
A) the component's manager is part of the CODM.
B) discrete financial information are available for the component.
C) the component's operating results are regularly reviewed by the CODM.
D) the component is able to generate revenue and incur expenses from its business activities.

Question

Quizplus · Accepted Answer

The key decision points for identifying an entity's component as an operating segment do not include the requirement that the component's manager is part of the Chief Operating Decision Maker (CODM). The focus is on the availability of discrete financial information, regular review of operating results by the CODM, and the ability to generate revenue and incur expenses.

The Key Decision Points in Identifying an Entity's Component as an Operating