In 20X6 and 20X7,each of Putney Company's four operating segments met one of the three quantitative tests for segment reporting.In 20X8,Segment B failed to qualify under the prescribed tests because of abnormal financial conditions.The other three segments qualified for reporting.For 20X8,Segment B:
A)should be excluded from segment disclosure but referred to in the management letter to shareholders.
B)should be distinctly separated from the other three segments and listed as a "nonqualifying" segment.
C)should be combined with one of the other three segments and reported.
D)should be included in the segment disclosures at the discretion of management.

Question

Quizplus · Accepted Answer

Segment B should be included in the segment disclosures at the discretion of management, even if it fails to meet the quantitative thresholds in a particular year, especially if it has been reported in prior periods. This approach allows for consistency and transparency in reporting, giving a complete view of the company's operations to the stakeholders.

In 20X6 and 20X7,each of Putney Company's Four Operating Segments