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?
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.

Question

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?
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.

Quizplus · Accepted Answer

A segment is reportable if its assets are 10% or more of the combined assets of all segments. Melbourne's assets are $400,000, which is more than 10% of the total $500,000, making it the only reportable segment.

Cherry Group Has Operating Segments in Three Different Locations ∙\bullet∙ Melbourne $400 000

Cherry Group Has Operating Segments in Three Different Locations $\bullet$ Melbourne $400 000