Gollum Ltd provides the following segment information: $\begin{array}{|l|r|}
\hline &\text { Segment result } \
&(\$ 000)\
\hline \text { Business segment: } & \
\hline \text { Industrial manufacturing } & (90) \
\hline \text { Project consulting } & 140 \
\hline \text { Mechanical engineering } & 20 \
\hline \text { Retailing } & (15) \
\hline \text { Agriculture } & 70 \
\hline \text { Geographical segment: } & \
\hline \text { Australia } & 100 \
\hline \text { Pacific Islands } &40 \
\hline \text { US } &(15)\
\hline
\end{array}$ There are no inter-segment sales.Which of the segments are reportable applying only the segment result test?
A) industrial manufacturing, project consulting, retailing, agriculture; geographical segments: Australia, Pacific Islands, US.
B) business segments: industrial manufacturing, project consulting; geographical segments: Australia.
C) business segments: industrial manufacturing, project consulting, mechanical engineering, retailing, agriculture; geographical segments: Australia, Pacific Islands, US.
D) business segments: industrial manufacturing, project consulting, agriculture; geographical segments: Australia, Pacific Islands.

Question

Gollum Ltd provides the following segment information: $\begin{array}{|l|r|}
\hline &\text { Segment result } \
&(\$ 000)\
\hline \text { Business segment: } & \
\hline \text { Industrial manufacturing } & (90) \
\hline \text { Project consulting } & 140 \
\hline \text { Mechanical engineering } & 20 \
\hline \text { Retailing } & (15) \
\hline \text { Agriculture } & 70 \
\hline \text { Geographical segment: } &  \
\hline \text { Australia } & 100 \
\hline \text { Pacific Islands } &40  \
\hline \text { US } &(15)\
\hline
\end{array}$  There are no inter-segment sales.Which of the segments are reportable applying only the segment result test?
A) industrial manufacturing, project consulting, retailing, agriculture; geographical segments: Australia, Pacific Islands, US.
B) business segments: industrial manufacturing, project consulting; geographical segments: Australia.
C) business segments: industrial manufacturing, project consulting, mechanical engineering, retailing, agriculture; geographical segments: Australia, Pacific Islands, US.
D) business segments: industrial manufacturing, project consulting, agriculture; geographical segments: Australia, Pacific Islands.

Quizplus · Accepted Answer

A segment is reportable if its absolute segment result is 10% or more of the combined segment results. Here, project consulting (140), industrial manufacturing (90), and agriculture (70) meet this criterion. For geographical segments, Australia (100) and Pacific Islands (40) are reportable.

Gollum Ltd Provides the Following Segment Information There Are No Inter-Segment Sales