The following information relates to All Industrials Ltd and its operating segment (in $'000s): $$\begin{array} { | l | r | r | r | r | r | r | }
\hline & { \text { Retail } } & { \text { Agriculture } } & { \text { Brewing } } & \text { Chemicals } & \text { Transport } & \text { Total } \\
\hline \text { Segment revenues } & & & & & & \
\hline \text { External } & 1100 & 1500 & 320 & 215 & 100 & 3235 \
\hline \text { Other segments } & 150 & 200 & 28 & 41 & 40 & 459 \
\hline \text { Segment results } & 220 & 127 & ( 30 ) & ( 360 ) & ( 20 ) & ( 63 ) \
\hline \text { Segment assets } & 360 & 260 & 50 & 50 & 51 & 771 \
\hline
\end{array}$$ Which operating segments are considered to be reportable under AASB 8 using the segment asset qualitative threshold?
A) all segments
B) retail and agriculture
C) retail, agriculture and brewing
D) retail, agriculture and chemicals

Question

The following information relates to All Industrials Ltd and its operating segment (in $'000s): $$\begin{array} { | l | r | r | r | r | r | r | } 
\hline &  { \text { Retail } } & { \text { Agriculture } } & { \text { Brewing } } & \text { Chemicals } & \text { Transport } & \text { Total } \\
\hline \text { Segment revenues } & & & & & & \
\hline \text { External } & 1100 & 1500 & 320 & 215 & 100 & 3235 \
\hline \text { Other segments } & 150 & 200 & 28 & 41 & 40 & 459 \
\hline \text { Segment results } & 220 & 127 & ( 30 ) & ( 360 ) & ( 20 ) & ( 63 ) \
\hline \text { Segment assets } & 360 & 260 & 50 & 50 & 51 & 771 \
\hline
\end{array}$$ Which operating segments are considered to be reportable under AASB 8 using the segment asset qualitative threshold?
A) all segments
B) retail and agriculture
C) retail, agriculture and brewing
D) retail, agriculture and chemicals

Quizplus · Accepted Answer

Under AASB 8, an operating segment is reportable if it meets one or more of the quantitative thresholds: its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments; its absolute amount of reported profit or loss is 10% or more of the greater, in absolute amount, of (1) the combined reported profit of all operating segments that did not report a loss and (2) the combined reported loss of all operating segments that reported a loss; or its assets are 10% or more of the combined assets of all operating segments. In this case, only the Retail and Agriculture segments have assets that exceed 10% of the total segment assets ($771,000), making them reportable based on the segment asset threshold.

The Following Information Relates to All Industrials Ltd and Its