The guidelines to determine that a segment is reportable in accordance with AASB 8 Operating Segments includes:
A) The segment's external revenue is equal to or greater than 10 per cent of the external sales of all operating segments.
B) The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses.
C) The segment's reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments.
D) The expenses of the segment that relate to external sales are equal to or greater than 10 per cent of total segment expenses, and the segment's revenues are 10 per cent or more of the total segment revenues.

Question

Quizplus · Accepted Answer

According to AASB 8 Operating Segments, a segment is reportable if its reported revenue, including both sales to external customers and intersegment sales or transfers, is equal to or greater than 10 per cent of the combined revenue, internal and external, of all operating segments. This is the only guideline mentioned in the options that is in line with AASB 8. Option A is incorrect as it only considers external revenue, and Option B is incorrect as it only considers expenses related to external sales. Option D is partially correct, but it places emphasis on both expenses and revenue, while AASB 8 only requires a threshold for revenue.

The Guidelines to Determine That a Segment Is Reportable in Accordance