Gandulf Ltd provides the following segment information: $\begin{array}{|l|r|}
\hline
&Segment~ result\
& (\$ 000) \
\hline \text { Business segment: } & \
\hline \text { Industrial manufacturing } & 500 \
\hline \text { Project consulting } & 90 \
\hline \text { Mechanical engineering } & 700 \
\hline \text { Retailing } & 140 \
\hline \text { Agriculture } & 70 \
\hline \text { Total } & 1500 \
\hline \text { Geographical segment: } & \
\hline \text { Australia } & 1000 \
\hline \text { Pacific Islands } &340 \
\hline \text { US } & 160 \
\hline \text { Total} & 1500\
\hline
\end{array}$ Which of the segments are reportable applying only the segment asset test?
A) business segments: industrial manufacturing, project consulting, mechanical engineering; geographical segments: Australia, US.
B) business segments: industrial manufacturing, mechanical engineering; geographical segments: Australia.
C) business segments: mechanical engineering; geographical segments: Australia.
D) business segments: industrial manufacturing, project consulting, mechanical engineering, retailing, agriculture; geographical segments: Australia, US.

Question

Gandulf Ltd provides the following segment information: $\begin{array}{|l|r|}
\hline
&Segment~ result\
 & (\$ 000) \
\hline \text { Business segment: } & \
\hline \text { Industrial manufacturing } & 500 \
\hline \text { Project consulting } & 90 \
\hline \text { Mechanical engineering } & 700 \
\hline \text { Retailing } & 140 \
\hline \text { Agriculture } & 70 \
\hline \text { Total } & 1500 \
\hline \text { Geographical segment: } & \
\hline \text { Australia } & 1000 \
\hline \text { Pacific Islands } &340  \
\hline \text { US } & 160 \
\hline \text { Total} & 1500\
\hline
\end{array}$  Which of the segments are reportable applying only the segment asset test?
A) business segments: industrial manufacturing, project consulting, mechanical engineering; geographical segments: Australia, US.
B) business segments: industrial manufacturing, mechanical engineering; geographical segments: Australia.
C) business segments: mechanical engineering; geographical segments: Australia.
D) business segments: industrial manufacturing, project consulting, mechanical engineering, retailing, agriculture; geographical segments: Australia, US.

Quizplus · Accepted Answer

The segment asset test typically requires segments to have a certain threshold of assets to be considered reportable. Without specific percentages or thresholds provided, we infer reportability from the given data. The industrial manufacturing and mechanical engineering business segments and the Australia geographical segment have the highest results, indicating they likely exceed any reasonable asset threshold for reportability.

Gandulf Ltd Provides the Following Segment Information Which of the Segments Are Reportable Applying Only the Segment