The following information relates to Aragorn Ltd and its Mordor segment.

In which years would the Mordor segment be classified as a reportable segment according to AASB 8?
A) 2001, 2003 and 2005.
B) 2001, 2002, 2003 and 2005.
C) 2002, 2003, 2004 and 2005.
D) 2003 and 2005
E) None of the given answers

Question

The following information relates to Aragorn Ltd and its Mordor segment.

In which years would the Mordor segment be classified as a reportable segment according to AASB 8?
A) 2001, 2003 and 2005. 
B) 2001, 2002, 2003 and 2005. 
C) 2002, 2003, 2004 and 2005. 
D) 2003 and 2005 
E) None of the given answers

Quizplus · Accepted Answer

According to AASB 8, a segment is classified as reportable if it meets either the quantitative threshold of having revenue, assets, or profit or loss that is 10% or more of the total for all segments, or if it is otherwise considered significant. In the years given, the Mordor segment meets the quantitative threshold in 2001, 2002, 2003, and 2005, so it would be classified as a reportable segment in those years.

The Following Information Relates to Aragorn Ltd and Its Mordor