All foreign subsidiaries are automatically operating segments (though some may not be reportable segments).

Question

Quizplus · Accepted Answer

Not all foreign subsidiaries are automatically considered operating segments. Operating segments are identified based on the internal reports that an organization's management uses to allocate resources and assess performance. A foreign subsidiary could be an operating segment if it meets these criteria, but it is not automatic solely based on its status as a foreign subsidiary.

All Foreign Subsidiaries Are Automatically Operating Segments (Though Some May